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Houdini Engine + Quixel Material Bug?

Hey guys, has anyone come across the issue that when you apply a Quixel material to a Houdini Engine asset, it only gets applied after converting to a static mesh? As you can see in the video, with the black material that I created in the Engine, it gets applied correctly, but the Quixel material shows the default texture, but after converting to a static mesh it shows up correctly. This is not really an option for me however, because the asset also has instances and those doesn’t convert well to a static mesh.

https://vimeo.com/388171451