I set up a test project with different combinations of Nanite/Non Nanite, Movable/Static, and instance and component types, and the only case that seems to not smear at all are the non-nanite Movable components. I've also got a nanite and non-nanite static mesh components oscillating back and forth on tick as well, as a control. Issue occurs in editor viewport and PIE.
This issue resolves itself if I ignore-switch to Velocity Write during Base Pass.
There's no existing public thread on this issue, so head over to Questions & Answers just mention UE-164554 in the post.