RectLight acts like point light in VR project

I am using 5.0.3

When I add a RectLight to my VR project, it illuminates in every direction. And the shadows are sharp.

I tried adding it in another project which is not a VR project and it was working as expected.

Any ideas?

Are you using forward shading? This is something that VR projects usually use, that’s why I’m asking. If you are, that’s the reason then: Rect Lights | Unreal Engine 4.27 Documentation

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I saw that message but I couldn’t find where to check if I am using it or not.
Then I thought “Well I’ve never enabled such a thing. I am using a template. Probably I am doing something wrong.”

And it looks like VR template already has this enabled AND it is kinda recommended for VR applications.

Thank you so much.