DistanceFieldReplacementMesh doesn't work properly for Nanite meshes

The problem can be reproduced using basic shapes from Engine Content.

1. Create a basic level, place a cube in the world.
2. Turn on mesh distance field visualization from Show->Visualize->Mesh DistanceFields
3. Open the cube's Static Mesh, and set its DistanceFieldReplacementMesh to a Sphere, hit Apply, then the mesh distance field visualized in the viewport changes to a sphere. But if you enable Nanite, the distance field won't respond correctly.

[UE-23848] Bug Status

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