Static Lighting Banding Artifact

Using static lights with very close objects somehow leads to occlusion banding effect or something.

It is how static lighting looks

It is how dynamic lighting looks and static lighting supposed to look like

Just to be sure I unchecked Ambient Occlusion on Post Processing, built light with production quality, bumped up lightmap resolution to 256 and even changed indirect intensity to 0.0.

if anyone is interested, this is the mesh.

Setting “Static Lighting Level Scale” in World Properties lower like 0.1 solves this problem.