Here are my findings with 5.4.1 VT needs to be enabled or you get the below out of memory error because it doesn’t mater what matieral you have set in your HLOD layer it still uses a VT one, so they fixed the error when building HLODs when VT was on but now people can’t build HLODs without it being enabled, the question is can they ever get it right lol.
LogWindows: Error: appError called: Fatal error: [File:F:\Epic Games\UnrealEngine-5.4.1-release\Engine\Source\Runtime\D3D12RHI\Private\D3D12Util.cpp] [Line: 926]
Out of video memory trying to allocate a rendering resource