Morph Targets in Skeletal Mesh LODs do not behave correctly
This is a REGRESSION, does not occur in 4.11
1. Download and unpack this file: [Link Removed]
2. Import LOD0
3. Open the Skeletal Mesh
4. Under LOD Settings, select Import LOD Level 1 under LOD Import
5. Choose the LOD1 fbx file
6. After it finishes, Switch from LODAuto at the top of the viewport to LOD1
7. Manipulate any morph target
Result: The morph target causes the character to shrink or grow and stretch at an angle
Expected: Morph targets behave like in LOD0 (this works in 4.11)
There's no existing public thread on this issue, so head over to Questions & Answers just mention UE-30955 in the post.