I am so sorry, I should have said r.raytracing.nanite.mode 1, that was my bad.
If you’re getting blurry/low-quality results from a PT renderer with nanite, that almost certainly means your proxy mesh is just not capturing the detail you need to. As an example:
Nanite mesh, raster
Nanite mesh, PT, proxy geo. Notice the blurriness and loss of detail.
Nanite Mesh, PT, with the above command reenabled. Notice you’re getting the full-fat microgeometry, correct textures, and all the fine shading you’d expect from the PT.