The licensee reported the following on this issue.

The problem seems to be that the comparison below is not working properly. If the Material is not created, it will be a comparison between WorldGridMaterials, resulting in an incorrect branch.
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I think that the intended operation will be obtained by adding the condition of Slot name as follows.

&& StaticMeshMaterial.MaterialSlotName == CandidateMaterial.MaterialSlotName


Steps to Reproduce
  1. Import the attached FBX.
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  2. Enable ImportMeshLODs and set Create New Materials.
  3. When imported, Slots are Red and Green.
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  4. Enable ImportMeshLODs and set Do Not Create Material.
  5. After importing, Slot will be Red only.
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Fix Commit14940433
Release Commit14940433
CreatedNov 30, 2020
ResolvedDec 16, 2020
UpdatedApr 27, 2021