If you open a mesh asset and generate LODs without saving it first, the bounding box is calculated using all available LODs. For example, if LOD1 is larger than LOD0, the resulting bounds will encompass LOD1.
Once the asset is saved, the bounding box calculation changes. From this point on, only LOD0 is considered when computing the bounding box. This means that even if other LODs are larger, the bounding box will tightly fit LOD0 only.
Your repro steps look good but seems like there some something different when you do duplicate/move.
Also, I don’t think ‘cube’ mesh is complex enough to make problem visible.
Here are exact repro steps with Sphere from Basic shapes:
1.) In a blank project, duplicate Sphere from Basic shapes and move it into content
2.) Open it and set max number of LODs to 2 and press apply changes
[Image Removed] Restart Unreal editor (seems like duplicate or move command does something with mesh so it’s not reproduceable in current instance of unreal editor)
4.) Open Sphere mesh again, change perspective view to ‘left view’ and enable bounds. It should look like this:
[Image Removed] Select LOD1. In LOD reduction settings, set triangle percentage to 100% and press apply
6.) Set triangle percentage back to 0% and press apply
7.) Observe how bbox size is changing and LOD1 is never outside of bbox:
LOD0
[Image Removed] 7b - Optional) You can switch triangle percentage back to 100% then back to 0% how many times you want, bounding box will behave the same
8.) Save mesh
9.) Repeat steps with adjusting triangle percentage 100%-0% and notice how bounding box will stay always the same, and LOD1 will be bigger than bounds.