Texture distortion occurs when importing a model with three million faces

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Most likely due to UV precision:

UV Precision Bug When Importing OBJ Models

Hi , This is expected since by default static meshes will use 16bit for standard UVs to save memory. Using full precision UVs will use 32bit for more accuracy. This will happen with FBXs as well as OBJ files. The further a UV island is from the 0,1 space the more it can have issues when not using full precision UVs enabled. Looking at your test asset this is clearly visible when looking at the distance the UVs of the pieces in question are from the 0,1 space. Here is an example: UV spaced …