Merging two actors using a two-sided material produce incorrect results.
Tested with "Allow two-sided material" on and off, the same result is produced. The same issue can be seen when generating HLODs.
Tested in: 4.23.1 CL#9631420, 4.25 CL#11574810
Results: The resulting actor appears to have 'bleeding' from the material of the other actor.
Expected: Merging actors to produce the correct results for textures and materials.
There's no existing public thread on this issue, so head over to Questions & Answers just mention UE-89382 in the post.