Landscape component does not display material normals

I experience an issue with landscape component, such that it does not display material normals. The material itself does not seem to be the issue, as it works okay on the neighboring landscape component and compiles without issues. I assume it might be down to some setting that I am not aware (and cannot find) or this might be a bug. Am I missing some parameter for displaying the normal map on the component or what else can I try to fix it? I reset the material several times, reset the layers and rebuilt the level but none of that helped.

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