Masked materials that sample virtual texture don't function correctly. They render black instead of masked.
This happens when there is no depth pre pass enabled.
Automatically enabling depth pre pass whenever virtual texturing is enabled would fix, but might be unwanted if people aren't using masked materials. So we need to find a better way to control that.
For now if people see this we recommend that they enable depth pre pass with these settings:
"Early Z-pass" to "Opaque and masked meshes"
"Mask material only in early Z-pass" to Enabled.
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Download the repro from here- [Link Removed]
With VT's enabled and DBufferDecals disabled, a VT sampled material, when masked, will show up black in the masked area. Regular textures do not and are masked as expected.
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There's no existing public thread on this issue, so head over to Questions & Answers just mention UE-117783 in the post.