Runtime Virtual Texture repeating squares/black square bug (UE 5.4)

Sorry to hear you’re running into the same problem. It took me months to get to even this point with it. It’s possible I’ve changed other things that are helping mine work, but that was definitely the setting that either made it work on not work on mine.

Did you disable texture compression on both the Runtime Virtual Texture Height Volume and the Runtime Virtual Texture Material Volume? And are you building you streaming files in those volumes?

I’ve also customized the virtual texture streaming pool settings in my project settings which you can try. I’m attaching a picture so you can see.