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External Actors & Landscape Layer Textures in packaged game does NOT work

In case you try to use External Actors of UE5 EA features and you package your game for shipping you will see that the Landscape layer’s textures do not show.

The way to workaround it is to select Landscape and changing it’s Packaging mode to INTERNAL.
This will make landscape layer textures visible again.

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I have spent 5+ hours debugging this bug, so I leave this workaround/fix here in case someone comes across this issue.