Our friend at Digital Foundary has discovered that installing GTA V Play Disc data onto USB flash drive improves overall performance of the game (with respect to graphics/visuals, texture pop-up issues and more).
It was mandatory to install GTA V Play Disc data on HDD but Rockstar Games Support Page advised Xbox 360 players not to do as installation of both disc data caused some noticeable performance issues such as texture pop issues and more.
Check out the footage below, it showcase better performance result after installing the GTA V ‘Play Disc’ data to a USB flash drive. In the below footage you can notice choppier camera pan compared to the smoother pan of the USB install.
NOTE: Please note end result may wary depending upon USB flash drive you will be using.