Perhaps unsurprisingly, the current 5.5 preview of Nanite Skeletal meshes doesn’t support Morph Targets or Chaos cloth (perhaps other things as well, but these are the 2 I noticed).
It makes sense having taken a quick look at SkeletalRenderNanite, it’s not doing anything with the morphs. I don’t have a full understanding of how Cloth is usually handled.
Are there plans to support Morph Targets and Chaos Cloth with Nanite Skeletal meshes or is it an inherent limitation?