I could not find any solutions for this, so I am posting this here.
Inserting SurfaceAppearance in a default MeshPart seems to be working somewhat fine, however when I insert a mesh ID and apply it, the Normal map of SurfaceAppearance does not work properly.
What I have also noticed is how certain faces of a default MeshPart (cube) seem to have the same issue, where one face works fine and the other has a broken Normal map.
I have recorded it and can be seen here: