Dithered LOD Transition Has Visual Pop

When a static mesh that is placed in the scene begins to transition using dithered LOD, The LOD that is being transitioned away from will "POP" in at full opacity for a moment just before the dithered fade is complete.

Notes

• The licensee claims that this doesn't occur with instanced foliage actors.
• This issue doesn't reproduce consistently but is fairly frequent. (attaching video so you know what to look for)

REGRESSION?
Yes

Working in: 4.13.2 Binary 3195953
Broken in: 4.14.1 Binary 3224400

1. Open attached project
2. Move camera close in and away from the orange mesh located in the scene such that it transitions LODs

RESULT
The LOD that is being transitioned away from will "POP" in at full opacity for a moment just before the dithered fade is complete.

EXPECTED
There is a smooth dithered transition from one LOD to another without any LOD levels popping in during transition.