Landscape HLODs weird results

I upgraded my project to 5.4, i had to recreate HLODS and i am getting weird results now.
I created a new level and it gets the same results.
Some layers turn out black in the HLOD textures, and i am getting different results everytime i use a different layer as the first one to paint.
Editor landscape view:

Simulated hlod view:

Does anyone know what is going on here?

Edit:
I tested this in a new project with the same landscape material and there is working like it is suppose to

Edit 2:
So in the new project virtual texture support was not enabled.
When i enabled virtual textures i would get the same results, this was not happening in 5.3.
I disabled virtual textures in the original project and then it worked.
Is this a bug in 5.4?