Unfortunately selecting Evaluate World Position Offset for Foliage does nothing to fix the issue. There is a video by William Faucher explaining how to work around that using Blueprints.
This workaround causes performance issues but at least my foliage looks acceptable.
This is definitely a problem using grass, bushes or any other foliage with wind animations. I’m surprised it stayed like this all the way to 5.0EA. Hopefully it will be fixed in UE5 release.