What is causing underwater foliage to render as "blocks"? UE5 / Screenshot inside

I’m not sure if this is a bug or not but outside of water, rendering of foliage is fine but underwater using a river seems to turn the quixel ginger lily into stone as seen in the screenshot. The LOD is set to 0 but I played around with it, nothing really changed. Toggling the mesh to nanite enabled gets rid of the problem but then of course, that means they won’t animate in water AFAIK.