I have this material set up to be world aligned and it works as expected on fully vertical surface, but on horizontal surfaces like on the floor, it seems to have streaking artifacts in darker lighting and I can’t seem to figure out why. I can adjust the projection transition contrast to be -1 but that just flips the direction of the streaking by 90 degress, it doesn’t remove it. The wall and floor material instances are instances of the same material.
I took a look at your material. Looks like streaks everywhere on the floor. Are you looking to keep the existing look and only fix the shadows? Because the entire floor area is not correct. The normals and AO are fine. But the base color is using the XY pin from the WorldAlignedTexture node. The output pin names may be a bit confusing. The XY pin actually samples vertically in the XZ and YZ planes. It combines them based on the tangent of your vertex normal. Since it’s zero, it just picks one and that’s why you get streaks. The Z pin is actually the top down version and that one would look good on the floor, but horrible on the walls.
Anyhow, just do what the other two textures do. Sample from the XYZ pin in the top graph for the base color. That picks the correct plane to sample from. Or if it’s floor only, you can copy your material and use the Z pin from all 6 nodes. It’s cheaper and faster.