Will considering context impact the performance?
Since you want to share user preferences that (I guess) do not change often, you could use a React context to share that data.
But performance issues arise when you put multiple different data in one React context that update at different rates. This is because every component that uses the context will be rerendered even if the part of the context it is interessted in did not change. In this case you can split the context and use one context for each part of the data.
Since you want to use the context to share an application state, you should use Redux. In Redux you use selectors to select a part of the application state. This useSelector hook is implemented in a way that it only triggers a rerender of the component if the selected part changes. You can even pass it an equality function if you want to change the way state change is detected.
As Redux is already configured which internally uses the Context. So should we continue to use redux for user data.
I would say: yes, continue with Redux.
Since you already use Redux you should not spread your application state management over different concepts. Put the user settings in the Redux store (like any other application state) and don't handle them special.
Is it good practice to use Redux and Context together
Well, Redux is based on the React context. So if you use Redux it is already a good practice.
If you mean using both for application state management, I think you should go the Redux or the React context way. Mixing them makes it harder to understand where state is managed.