There may be different designs, but some auto-feed models have a clutch mechanism that frees the spool as you start and stop, and (so-called) centrifugal force pulls some more line from the spool. The knife then cuts off any excess line.
This can waste a lot of line, depending how you use the machine - i.e. the amount of "cutting time" between each start and stop.
The "bump feed" ones work on the same basic principle, except that the "bump" frees the spool to release the line. There is a tradeoff between the manual system being simpler, more reliable, and less likely to jam, versus the risk of damaging the machine when "bumping" it.