HLOD not building correct type of HLOD.

In 5.7 my HLODs are not building the correct type. I migrated this level from 5.6 which worked correctly. In 5.7 instead of building instances→ HLOD approx → HLOD approx 2….

It seems to hide hlod0 instances and build both hlod 1 approx and hlod 2 approx AS Instances. It makes no sense. They are both set to approximate with their own building settings which are set correctly.

World settings look fine.

I even tried setting the grid to what i named the grid on all the meshes … which had the same results.

What do i do? This is a world partition level.