Material Instance color applied as Blendable gets overridden by Master Material's color

When applying a Post Process Material Instance as a blendable element in a Post Process Volume with the blend radius set higher than 0, the post process will blend the Master Material's inputs with the Material Instance applied.

REGRESSION?
Yes, this issue doesn't occur in the binary of 4.11.2 - 2946394

1. Open the editor for any project
2. Create a material and set material domain to Post Process
3. Create a vector parameter node
4. Plug it into emissive color
5. Create Material Instance of the material you just made
6. Open the new instance you just created and adjust the color on the vector parameter so that it's different from the master material
7. Create postprocess volume
8. Apply the material instance you created earlier as blendable
9. Set Blend radius to 300
10. In the level view port move the camera slowly towards the volume

RESULT: At the edge of the specified blend radius the master material's color overrides the material instances' color. (See attached screenshots)

EXPECTED: Only the material instances color blends and not the master material's color.

Fix UE-51650

[UE-23848] Bug Status

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