In all details, it creates shadows from the mesh with the original shape without any displaced deformations. Only when ray tracing shadows are deactivated, the shadows look correct, but they are too harsh
For your second issue this will be fixed in 5.6. In older versions Lumen reflections and raytraced translucency were de-coupled for performance reasons. In 5.6 they should be able to see each other.
Regrettably, this is not a solution; it is a feature that is too apparent and I have activated it at the engine level. I spent three days activating every console command, but it did not help.
There must be something else… This is An Avengers Level Threat