When updating Transform of InstancedStaticMesh by UpdateInstanceTransform, PerInstanceRandom used in Material is updated.
With 4.16 does not update the RandomSeed value.
1. Place the Actor that owns the InstanceStaticMeshComponent on the level
2. Updated coordinates with Updat Instance Transform for Instance of InstanceStaticMeshComponent (applies Mark Render State Dirty).
PIE of the attached reproduction project, the color of InstancedStaticMesh is updated by UpdateInstanceTransform.
There's no existing public thread on this issue, so head over toAnswerHub just mention UE-51415 in the post.