I've attached a project with the necessary materials that demonstrate this issue. I would expect that just because a Set Material Attributes node is inside a material graph it wouldn't affect the decal blend mode of the material.
There's no existing public thread on this issue, so head over to Questions & Answers just mention UE-129565 in the post.
| 0 |
| Component | UE - Graphics Features |
|---|---|
| Affects Versions | 5.0, 5.1 |
| Target Fix | 5.8 |
| Created | Sep 28, 2021 |
|---|---|
| Updated | Aug 26, 2025 |