Serious performance bug with Instanced Static Mesh

If the rendering is the problem, then there’s functionally no difference between spawn type one and spawn type two except that when spawning in an orderly way, the instanced meshes are probably batched together more intelligently.

Wouldn’t it be reasonable to assume that totally random spawning at runtime will cause the batching of meshes (and therefore your culling, occlusion, LOD’s) to become intertwined in undesirable ways?