I am having a 2D tile show in front of a 2D tile that is higher in 3D space, not sure why (in the video, notice the lower part of the tree that is hidden by the terrain below it). Changing LOD settings does not affect it.
Translucent materials often suffer from sorting issues, and for that reason they’re not great for how you’re trying to use them.
Instead, try changing your material to MASKED blend mode, and plug your textures alpha channel into the Opacity Mask input.
(The downside to this approach is that you can only have fully opaque or fully hidden pixels)