UE5 had this problem with assets made in speedtree where wind animation was acting weird on instanced meshes (and worked as intended on static meshes). Apparently a solution was provided here- SpeedTree wind incorrect calculation on instanced meshes (foliage)
PROBLEM:
Here the plant on the left side is instanced using pcg and the one on the right side is hand-placed static mesh.
In newer updates including 5.3 the “MaterialTemplate.ush” has the fix already implemented. Yet the problem still exists.
Also turning on ‘Evaluate World Position Offset’ doesn’t help.