SQL Server 2019

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CREATE TABLE dbo.table3(id int identity(1,1) PRIMARY KEY, Type int);
CREATE INDEX ix ON dbo.table3(Type);

INSERT dbo.table3(Type) VALUES(1),(1),(2),(4),(3),(7);
6 rows affected

DECLARE @Daily bit = 1;

DECLARE @sql nvarchar(max) = N'SELECT *
      FROM dbo.table3 
      WHERE Type IN (' + CASE @Daily
        WHEN 1 THEN '1,2,3,4' ELSE '5,6,7,8' END + N');';

 SELECT @sql;

(No column name)

SELECT *
      FROM dbo.table3 
      WHERE Type IN (1,2,3,4);

SET SHOWPLAN_XML ON;
SELECT *
      FROM dbo.table3
      WHERE Type IN (1,2,3,4);

Microsoft SQL Server 2005 XML Showplan

<ShowPlanXML xmlns="http://schemas.microsoft.com/sqlserver/2004/07/showplan" Version="1.539" Build="15.0.4223.1"><BatchSequence><Batch><Statements><StmtSimple StatementText="SELECT *&#xa;      FROM dbo.table3&#xa;      WHERE Type IN (1,2,3,4)" StatementId="1" StatementCompId="1" StatementType="SELECT" RetrievedFromCache="false" StatementSubTreeCost="0.0032875" StatementEstRows="5" SecurityPolicyApplied="false" StatementOptmLevel="TRIVIAL" QueryHash="0x0BB80A1C8097F545" QueryPlanHash="0x7A68A1B3E5722C98" CardinalityEstimationModelVersion="150"><StatementSetOptions QUOTED_IDENTIFIER="true" ARITHABORT="true" CONCAT_NULL_YIELDS_NULL="true" ANSI_NULLS="true" ANSI_PADDING="true" ANSI_WARNINGS="true" NUMERIC_ROUNDABORT="false"></StatementSetOptions><QueryPlan NonParallelPlanReason="NoParallelPlansInDesktopOrExpressEdition" CachedPlanSize="24" CompileTime="0" CompileCPU="0" CompileMemory="152"><MemoryGrantInfo SerialRequiredMemory="0" SerialDesiredMemory="0" GrantedMemory="0" MaxUsedMemory="0"></MemoryGrantInfo><OptimizerHardwareDependentProperties EstimatedAvailableMemoryGrant="1258238" EstimatedPagesCached="78639" EstimatedAvailableDegreeOfParallelism="1" MaxCompileMemory="1271704"></OptimizerHardwareDependentProperties><OptimizerStatsUsage><StatisticsInfo LastUpdate="2022-10-24T23:29:31.18" ModificationCount="0" SamplingPercent="100" Statistics="[ix]" Table="[table3]" Schema="[dbo]" Database="[fiddle_30b5d7e971244122a9a0ad6328a55614]"></StatisticsInfo></OptimizerStatsUsage><TraceFlags IsCompileTime="1"><TraceFlag Value="460" Scope="Global"></TraceFlag><TraceFlag Value="8017" Scope="Global"></TraceFlag></TraceFlags><RelOp NodeId="0" PhysicalOp="Index Seek" LogicalOp="Index Seek" EstimateRows="5" EstimatedRowsRead="5" EstimateIO="0.003125" EstimateCPU="0.0001625" AvgRowSize="15" EstimatedTotalSubtreeCost="0.0032875" TableCardinality="6" Parallel="0" EstimateRebinds="0" EstimateRewinds="0" EstimatedExecutionMode="Row"><OutputList><ColumnReference Database="[fiddle_30b5d7e971244122a9a0ad6328a55614]" Schema="[dbo]" Table="[table3]" Column="id"></ColumnReference><ColumnReference Database="[fiddle_30b5d7e971244122a9a0ad6328a55614]" Schema="[dbo]" Table="[table3]" Column="Type"></ColumnReference></OutputList><IndexScan Ordered="1" ScanDirection="FORWARD" ForcedIndex="0" ForceSeek="0" ForceScan="0" NoExpandHint="0" Storage="RowStore"><DefinedValues><DefinedValue><ColumnReference Database="[fiddle_30b5d7e971244122a9a0ad6328a55614]" Schema="[dbo]" Table="[table3]" Column="id"></ColumnReference></DefinedValue><DefinedValue><ColumnReference Database="[fiddle_30b5d7e971244122a9a0ad6328a55614]" Schema="[dbo]" Table="[table3]" Column="Type"></ColumnReference></DefinedValue></DefinedValues><Object Database="[fiddle_30b5d7e971244122a9a0ad6328a55614]" Schema="[dbo]" Table="[table3]" Index="[ix]" IndexKind="NonClustered" Storage="RowStore"></Object><SeekPredicates><SeekPredicateNew><SeekKeys><Prefix ScanType="EQ"><RangeColumns><ColumnReference Database="[fiddle_30b5d7e971244122a9a0ad6328a55614]" Schema="[dbo]" Table="[table3]" Column="Type"></ColumnReference></RangeColumns><RangeExpressions><ScalarOperator ScalarString="(1)"><Const ConstValue="(1)"></Const></ScalarOperator></RangeExpressions></Prefix></SeekKeys></SeekPredicateNew><SeekPredicateNew><SeekKeys><Prefix ScanType="EQ"><RangeColumns><ColumnReference Database="[fiddle_30b5d7e971244122a9a0ad6328a55614]" Schema="[dbo]" Table="[table3]" Column="Type"></ColumnReference></RangeColumns><RangeExpressions><ScalarOperator ScalarString="(2)"><Const ConstValue="(2)"></Const></ScalarOperator></RangeExpressions></Prefix></SeekKeys></SeekPredicateNew><SeekPredicateNew><SeekKeys><Prefix ScanType="EQ"><RangeColumns><ColumnReference Database="[fiddle_30b5d7e971244122a9a0ad6328a55614]" Schema="[dbo]" Table="[table3]" Column="Type"></ColumnReference></RangeColumns><RangeExpressions><ScalarOperator ScalarString="(3)"><Const ConstValue="(3)"></Const></ScalarOperator></RangeExpressions></Prefix></SeekKeys></SeekPredicateNew><SeekPredicateNew><SeekKeys><Prefix ScanType="EQ"><RangeColumns><ColumnReference Database="[fiddle_30b5d7e971244122a9a0ad6328a55614]" Schema="[dbo]" Table="[table3]" Column="Type"></ColumnReference></RangeColumns><RangeExpressions><ScalarOperator ScalarString="(4)"><Const ConstValue="(4)"></Const></ScalarOperator></RangeExpressions></Prefix></SeekKeys></SeekPredicateNew></SeekPredicates></IndexScan></RelOp></QueryPlan></StmtSimple></Statements></Batch></BatchSequence></ShowPlanXML>