Nanite artifacts

I’m in the second week of my UE journey, trying to figure out, what is the problem I am having with Nanite and Tesselation. Here is where I set it up, it works but with huge artifacts. Here are examples with 8k Megascan texture and the second is with 2k if I remember correctly.

The problem seems to be not with Nanite Tessellation Displacement but with Nanite itself. It is super noticeable when I just turn it on, textures become grainy, and Tesselation only amplifies it, turning gains into spikes.

I haven’t found anyone complaining regarding this issue.



UPD 1:
While testing different options (I assumed I could affect it by adjusting ORD texture, but none options I tested made an effect), I noticed that on 8k texture the artifact has a pattern, it kind of stairs to a near higher point, marked it with pink on the screenshot. But, there are parts that I assumed should be affected remain flat, marked these sections with green.

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