Looking at your image, I would expect the object to look like that if the underside is the emissive material portion. The emissive nature with LPV will still using a voxel which will not provide the light blocking in this type of asset. The emissive materials and LPV also do not cast shadows, which can be another factor here. So for this of object, I would use a small spot light and just have an emissive material that isn’t enabled to use with LPV. For the environment though LPV should not pose as much an issue, aside from the light leaking in tighter areas.
Ray Traced Distance Field Shadows can look good, but will probably take some tweaking on the part of the mesh distance field resolution so that there is a good enough resolution for the shadows to cast from and block. Also, when using Point or Spot lights with distance fields can help to use a small source radius size so that this acts like a small bulb and gives better fall off shadows. If you decide to test this method this information can probably help you get the results you like. If not, just using a point or spot light should work well enough too.