M_MS_Default_Fuzz_Material Warning

I have recently installed the UE 5.0.0, before new version, I was using UE 5 Preview 2. When I opened my project first time I’ve encountered “M_MS_Default_Fuzz_Material was missing the usage flag bUsedWithInstanceStaticMeshes. If the material asset is not re-saved, it may not render correctly…” warning. I am not sure this is related to my problem.
My problem is:
All 3D assests looks corrupted in my level as you can see in the photos.


I would be greatful if someone could help me out. Thank you for taking the time!

Changing DX11 to DX12 should solve this.

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