This issue seems to occur when using Cook on the fly on a Material that is branched on the Static switch. This issue also seems to occur on the console.
Regression = Yes, issue is not reproduced //UE4/Release-4.26 at CL 15973114
1. Open the attached project.
 [Link Removed]
2. Launch with Cook on the fly from Project launcher
 Materials using Static swtich are rendered with Grid material.
[Link Removed]
Renders correctly when packaged.
[Link Removed]
There's no existing public thread on this issue, so head over to Questions & Answers just mention UE-134169 in the post.
| 1 | 
| Component | UE - Rendering Architecture - Shaders | 
|---|---|
| Affects Versions | 4.27.1 | 
| Created | Nov 8, 2021 | 
|---|---|
| Updated | Dec 1, 2022 |