Instanced meshes spread further apart as size increases

As the size increases on instanced static meshes, they spread further apart, causing unwanted breaks in tiling. This increase is proportionate to the increase of size.

Note: Despite the collision on the static meshes, this does not seem to be directly correlated to a model's collision. In the test project collision was switched between box collision and simple as complex collision with the same results.

1. Download and open attached project
2. Place copy of GridTest BP into level
3. Set Max X and Max Y to 10, set tile size to 1000
4. Press simulate

Results:

Noticable breaks in tiling appear between instanced meshes

Expected:

Tiles remain clustered together, no visible space should be shown through the instanced meshes.

Why does instanced static mesh shrink when rotated?

Instanced mesh scale

Instanced static mesh - instance renderings shrink depending on rotation

Instanced mesh scale