Running UE5.0, New empty project (no ray-tracing) with standard Environment Light Mixer setup and some CubeGrid floor+walls.
This screenshot shows a simple planar imported mesh actor to the left and an Unreal Plane shape that was added after import to the right. Both have same material, same normal direction. Lighting has been rebuilt. Both have sun shadow but only the UE plane to the right blocks the SkyLight / GI so it gets darker under it.
For the life of me I cannot understand why the imported mesh does not occlude global illumination / SkyLight, when both do cast a shadow from the sun DirectionalLight. I have compared every setting in the entire actor details and there is no difference except Transform coordinates. (Both are set to Static)
Hey there @JesperWe! This might be because (if I remember correctly) that the skylight uses Mesh Distance Fields to calculate contribution to indirect shadows. Try out these two settings and let me know how it goes!
Those exact settings were not the issue, but I had not compared the Details panel you get when you open the Mesh from the Content Browser, only those you get from the Outliner.
So with your guidance, there I found the Distance Field Resolution Scale parameter, which was incorrectly set to 0. Setting it to larger values fixed my issue!