Hey Konflict,
Can you reproduce this in a blank and minimal test project, and provide me with steps or the project itself?
I ran a very similar test on my end, but am confused as to how you are enabling the Mesh Distance Field visualizer during PIE and switching back and forth between that and Lit Mode to see the shadowing errors.
I will say that upon reading the documentation on Distance Fields, any sort of World Position Offset used within materials on objects that have opted into Generating Mesh Distance Fields, will not be displayed correctly. Now, since World Origin Shifting Shifting results in adding an offset vector to all registered Actors in the world, I would assume the Distance Field implementation to have issues. This could be incorrect though since there is a difference between the vertex and pixel shader and how geometries locations are stored.
Let me know if you have additional questions.
Thanks,