When you spawn a particle with a mesh renderer, it wont show materials anymore. Happened this update
Steps to Reproduce
Make a new niagara vfx
Add a mesh renderer to it and choose a custom asset you made in modelling mode
Place the particle in the world and launch live edit
Ok turns out its not broken, I have to manually set the material to be used with niagara meshes. Kinda annoying to figure out but at least there is a solution
Here is how to fix this: inside material editor, click on the big material node that you add color, roughness etc, then on details on the left find a tab called “usage”, its under there (used with niagara particles).