Dynamic light settings in Persona viewport cause edges to appear hardened

Dynamic light settings in Persona viewport cause edges to appear hardened.

See attached image, but also images in the Answerhub post.

1. Create a Third Person Template project
2. Open the SK_Mannequin skeletal mesh
3. Zoom the camera towards his head or any rounded part of his body
4. Hold L and click and drag in the viewport

Result: Edges appear hardened. I was able to reproduce this in the main level viewport by manipulating Dynamic Shadow Distance MovableLight after converting the directional light to movable.
Expected: Add complete directional light settings to the Preview Scene Settings window. Possibly adjust the defaults too so that edges appear smooth.