Rhino - Tessellation - 'Crack Free Displacement' not compatible with meshes

Meshes imported from rhino are not compatible with 'Crack Free Displacement'

1. Import a Rhino .3dm file (One is attached)
2. Open Master Material
3. Set Tessellation mode to Flat
4. Enable 'Crack Free Displacement'

Result: Materials with Crack Free Displacement enabled will show only default grid material on meshes imported from Rhino

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