Version: Main branch 46320669; 5.7 Preview Epic Launcher pre-built;
Issue: Playing a <sequence> that is within a <level instance> turns back on the gray <level instance editing> visualizing shader even when viewport show flag <visualize level instance editing> is off.
Workaround: Turning off “Toggle Context Restriction” [SHIFT+L] gets rid of the gray (level instance editing) shader completely and thus is not present also when level instanced sequence is being played.
Related:
This question was created in reference to: [Toggling Level Instance Gray Color During [Content removed]