Licensee description of project:
There is a pawn with 4 cubes attached, the 2 red on the left are "normal" static meshes, and the 2 green on the right are Nanite meshes. The 2 bottom cubes have "setOwnerNoSee" flag checked.
When hitting play, the attended behavior is to only see the 2 upper cubes, and to see the 4 cubes if not owning the pawn (can be emulated by clicking the "eject" button near stop button). Albeit the second part works, the first one not, the Nanite cube with SetOwnerNoSee is visible when owning the pawn (and it should not). (See UDN for images/further info)
Also please note, this appears to not occur with SM5, only with SM6 enabled.
Download the licensee repro from here - [Link Removed]
Open the project and hit PIE.
Red meshes on the left are regular, green are nanite. Bottom red is hidden correctly, Nanite mesh is not.
There's no existing public thread on this issue, so head over to Questions & Answers just mention UE-170154 in the post.