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I think every sequencer works with 32-bit floating point internally. The setting you're messing around with is probably a recording setting; when you record you can choose what bit depth you want to record it in and no, there's no real disadvantage to a 32-bit recording except for bandwidth. If you're streaming a bunch of files off a disk, you have to read more bytes at a time if they're 32-bit, which means you can't play back as many at once (someone actually posted about a disk bandwidth problem a few weeks ago).
If you don't do a lot of recording, sampling, etc., then it probably won't make much difference.
If your sequencer is actually letting you change the bit depth of its internal processing then that seems like a bit of a WTF to me... 32 bits is the actual number of bits in a single-precision floating point number on a PC so it would be pretty hard to go below that. Easy to go above, though, to a double (64) or extended (80). Wasteful, though, since the hardware doesn't support more than 24 bits and 32 bits is plenty enough to avoid any rounding errors.
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