Today I enabled scene graph but it creates severe lag on switch, and on high end device material updates are a few seconds behind. Its only the first time the material is shown that it is delayed. See video.
In my settings area there is vote indicator props, 3 for each panel. I can turn them green with SetMaterial on the creative_prop. It seems that when I create those props on gamestart they are not loaded in for the player yet because they are out of render distance. The player begins at spawn area and the settings area is like 20 tiles away. Then when the player teleports to them and I want to instantly update their materials the game needs a second because the props just loaded in for the player.
In the second video I teleport the player to the area, then wait 5s, then turn on the indicators that need to be green. This time they instantly update without delay. So it seems to be render distance related.
I was able to get a repro in an empty map without usince scen graph:
Calling creative_prop.SetMaterial with a simple parameterized material triggered approximately 4 seconds of general gameplay delay in a fresh UEFN project when an unrelated, uncalled Verse function contained 5,784 empty-class constructions. The tester describes the effect as affecting the game broadly, rather than only the material update or emotes. The exact affected systems have not been profiled; walking remained possible in earlier observations, so this is not a confirmed complete client freeze. Adding more leafs creates more delay.
Splitting those same constructions across 91 small functions removed the noticeable lag. Removing the material parameter also removed it. Timings are user estimates; the internal engine cause is unknown.