Autogenerate proxyclasses basically means that Doctrine 2 automatically generates "proxy classes" for your objects instead of only generating them manually using generate-proxies. Proxies are used when you have relationships in your entities, and they should be lazy.
To create mapping information from a database, you can use transform-transform:
php doctrine orm:convert-mapping --from-database yml /path/to/mapping-path-converted-to-yml
Remember that this is only recommended as a starting point. The database driver cannot correctly generate mappings for all possible combinations of parameters, so you probably should just run it once and then write the mappings yourself.
See the Doctrine 2 Reverse Database Design Guide
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