I believe it’s a degradation because 5.3 release notes have this: “Added Navigation Mesh generation optimization when using it with Hierarchical Instanced Static Meshes. This avoids gathering unnecessary geometry when building tiles.”
Seeing gaps in the navmesh when my level is built with HISM as floors. The only thing I could do for now is change my script to use Instanced static meshes instead.
The NavMesh generation appears to be malfunctioning overall. When adding agents, it can cause crashes and fail to build the recast actors properly. I would have wasted even more time if I hadn’t come across several similar bugs before. However, it is still difficult to find accurate answers online due to the current issues with web searching in general. But if this is really a bug then having different Agents for Navigation can not be done in Unreal Engine 5 althought I don’t know how long this bug has existed before.