Megascan Material Not Applying to BSP

It probably won’t help you now since, but for future references (this is one of the top results in Google), you can disable the Tessellation options in the Master Material of the Megascans material you want to apply to a BSP.

This should allow you to apply the material to BSP, obviously you will not be able to take advantage of any feature that requires tessellation, like the displacement maps.