Hi everyone! I actually ended up finding out the issue: It turns out of you used this cvar and value that was recommended by Epic Games for smaller scale grooms, you find yourself having the weird shadow artifacts from the voxel resolution. I recommend everyone to play with the scale of the voxels so that you don’t get weird banding or shadowing artifacts
This is the setting Epic Devs recommended (that caused the problems)
r.HairStrands.Voxelization.Virtual.VoxelWorldSize = .15
This is the setting that I changed to help my groom get rid of the weird shadowing or blinds artifacts
r.HairStrands.Voxelization.Virtual.VoxelWorldSize = .5 or 1
Hope this helps someone cuz I was driven nuts by the lack of documentation or solutions online for this. It will make your shadows a bit less dark but will be able to see the skylighting integration a lot better.