UE5 Blocky Hard Shadow on the Landscape

This is known as the shadow terminator problem and can only be solved by either biasing the shadow casting geometry or increasing the polygon count of the mesh. It happens because the mesh is low poly and this is what casts the shadow, while the rest of the shading is handled by the normals which are smooth. If the sharp geometry doesn’t align well with the smooth normals, shading artifacts are expected.