(BUG) Dynamic Inset Shadows Broken in UE5 Preview2

The option for Dynamic Inset Shadows for skeletal mesh seems broken in UE5 Preview 2.

This option is working fine in UE5 Early Access 2.

See images below.

Notes :

Both projects are using RHI Direct X 12
Both projects are using the same Project Settings.
Both projects have all Ray Tracing features enabled in the Project Settings, including Ray Traced Shadows.
Both projects are using Shadow Maps and not Virtual Shadow Map.
Both projects are using Lumen with Hardware Ray Tracing enabled.

My guess for this issue is :

In UE5 Preview2, the engine does not seems to take into consideration DistanceField Ray Traced Shadows for Skeletal Mesh using the Dynamic Inset Shadow option, when you uncheck the option to cast Ray Traced Shadows on the casting light itself.

In UE5 Early Access 2, the engine seems to distinguish the difference between using Ray Traced Shadows and Ray Traced DistanceField Shadows.

So in UE5 Preview2, it seems that Ray Traced Shadows and Ray Traced DistanceField Shadows are not threated seperately, but as a whole instead resulting in no shadows being casted at all from the Skeletal Mesh.


I am having the same issue in UE5, did you manage to solve this?