Hey joelr,
I received some new information in regards to your set up and issue. It was brought to my attention that you are using a widget component to render your UI.
The widget component uses a render target so the texel density is constant. Mip mapping won’t ever work for it while it remains a render target. You should be using meshes instead.
The mip level is picked based on texel density compared to pixel density. A level is picked that most closely matches what is on screen.
Nearest/Point filtering means no mips are being considered, you’re just picking the closest pixel to the UV coordinate. I hope this clarifies your issue.
Thank you,