The “Triplanar in Local Space” setup however, causes a (“severe”) misalignment with the texture, unfortunately…
However, it fixates the texture onto the mesh and makes it independent to movement distortions.
The “Cylindrical Projection” works like the pre-skinned setup from the video mentioned above. However, it causes a more obvious texture distortion at the UV seams…
On that note, I realized that Quixel Mixer uses a box projection for their texture overlays which yields similar results than the red top in the OP. But since Quixel Mixer bakes the textures, there is no need to fixate the texture…