I don’t see any particular pattern arising as to where this happens and where it doesn’t but it always seems to be at a similar distance from the camera, and then it will fix itself again if you go even further. It seems to only effect the like “first” LOD level once getting far enough away from terrain in it’s normal resolution
It’s a natural part of smooth terrain; at certain distances the terrain will ‘degrade’ in order to perform better. I’ve spotted small holes which was not visible in a distance on a flat surface.
Just to give an update on this - the source of the issue is identified (it’s a regression from a recent optimization change). Release next week will contain a quick fix that should resolve the issue; there will be a further change that’ll involve a somewhat more comprehensive look at the algorithm since this shouldn’t have happened in the first place