Hi [mention removed].
Thanks for the comments, but as you can see in the attached images at the top the texture used on the GPU side has wrong “compression-like” artifacts. Both versions have the same setup with sRGB disabled and without touching any of the other settings (they are set to default). This is a default third person template setup, so it should work without any issue. I checked your suspicion of post-processing or lighting setup and in ThirdPerson template scene I disabled any post-processes, fogs, tried with Lumen off-on and same with Megalights. Still the same result and due to it looking “tiled” it really seems like texture compression artifacts. Like if when changing the encoding the values were put into wrong range and thus quantized. When I saw it first I also thought it’s just a preview thing, but it’s actually affecting the final result.