Hi,
thanks for reaching out. This is in fact intended behaviour: when dealing with Nanite meshes, there is some extra geometry created around the edges of the HLOD landscape tiles forming a so-called “skirt” (i.e. another set of triangles after the outer rows/columns of the landscape streaming proxy’s vertices, at a downwards 45 deg angle), which intersect with each other to ensure there is no visible gap between the tiles.
The following topics have some more info about that:
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Let me know if this is helpful or if you have further questions.
Best,
Sam