This is probably a cosmetic glitch - when you try to manually import a LOD for a character, the “Windows” window that pops up to browse for a resource file to import the lod, the title of the window will display some kind of error message saying “Failed to import mesh for LOD 1!” before you even try to import anything. If you proceed with selecting some mesh with LOD all works correctly.
Repro steps:
- open any character from Content Browser
- in the “LOD Settings” section, “LOD Import” field, click on the dropdown menu that says “Base LOD” and select “Import LOD Level X” where X is whatever would be the last LOD on that particular character
- Windows dialogue will pop up to browse for the LOD
- observe the tiny bug