Today, when logging in, I noticed that Rockstar have removed the setting in control options for mouse and keyboard to select aiming types, but left it in for Controllers. After experimenting a little by plugging in a controller, my impression is that controller users can still use auto aim but the range for it to lock on appears to have been somewhat reduced. I feel this will effect the game mechanic somewhat as free aim users are just going to be trying to snipe, whilst controller users will be trying to get up close and get a lock on. It's also worth mentioning that free aim users are at a disadvantage in that even when controller users can't see you because of grass or foilage etc, they can still just lock on and fire.
I feel like rather than addressing the situation by returning the setting for selecting free aim or auto aim servers, Rockstar is instead just trying to prevent people from noticing that it's a thing