Don’t quote me on this but I believe this is how heightmaps usually are, I recently tried creating a large one myself a few days ago and found the same issue to be present. In my opinion the next best thing to do would be to go through with manual tools and smooth it out, it is tedious but it’s better than making it from scratch.
Well I’m gonna have fun. I just created a 32k x 32k terrain map that is entirely composed of canyons and mountains, so smoothing it all out would be taking me months to complete.
Could this possibly be a problem with the resolution of the heightmap that you used to generate this terrain? Sometimes blocky terrain could be a result of Roblox’s terrain voxels being buggy but this seems too large to be that. You may just be generating too large of terrain off of a heightmap that is just too low quality.
Just read your post again, your heightmap is likely too low resolution to be able to smoothly generate a 32000x32000 map. Try to find a way to increase the resolution of the heightmap and try to generate again and I believe it should be smoother. Besides that I don’t think it is a bug.
It is possible it may just be feature/studio limitations. Such high volumes of terrain can cause high stress on the program and it may not function as intended. So now I think it would be either a bug or limitation imposed by either the terrain feature or studio in itself. I’ll continue to think of what may be the problem.
Have you tried replacing the material with another material to see if that fills in the holes, then switching it back ?
If you lower the y height does that change anything?
If you zoom into your source height map images to where the hole appear , is the texture clean with no spots ? (Or i guess you also need to look at the color map also … )
Maybe improving the range could make it less blocky. Could you try adjusting the brightness and contrast so that the brightest pixel is 255 and the darkest is 0?