As shown from the images, grass clips through the ground in some locations and it floats in others. The collision and LOD settings are correct, as you can see, the character stands on it perfectly and is perfectly aligned with the ground. When I manually place foliage using UE Foliage tool, it works fine, the problem only occurs when I use landscape grass.
The meshes are aligned well with the origin (the bottom of the grass is at the origin) and scaling settigns are uniform static (1,1,1). Changing any of the grass settings (eg. rotation and alignment) does not do anything to fix this.
Any help would be appreciated a lot! Thanks!