Turns out the issue is actually the Shader Quality option, not LOD/textures - I assumed it was LOD/texture related due to how the glitch manifests, looks like a missing texture replaced with a placeholder but I guess it's actually a missing or not (yet?) compiled shader being replaced w/a placeholder. Perhaps a minor difference in some eyes but I wanted to clarify, especially as there's a separate Shader Quality option aside from the Texture Quality option and it's changing of the Shader Quality option that manifests the issue, not texture quality.
Still happens in 1.2. Was hoping 1.2 would fix it since the notes said Shader Cache/Precompilation was enabled, but still happened.
Downloading 1.3 now, will see if it's still the case.
Fortunately it's not a completely game-breaking issue - if you restart the game after changing the Shader Quality, after the restart the shaders are displayed correctly and you don't see the checkerboard placeholder. Still annoying though if you're changing the Shader Quality setting while trying to dial in the best compromise of FPS/graphics quality for your rig - it can be annoying enough to do an A/B test of all the options and their effects on quality and FPS when you have to open the menu and navigate to a setting each time, having to restart the game to see the difference isn't great - but at least it works after a restart.
Now that I know it's shaders, the issue makes a bit more sense but I don't see why the shaders wouldn't be compiled on the fly or otherwise what else might cause the issue; also, with caching, you'd assume at the very least once you had started the game in each quality level that all the different quality level shaders would be compiled and cached, thus eliminating the manifestation of the issue but I'm not sure this is the case, though I can't say 100% that it's not after the v1.2 update as I sort of just left it alone after the update, trying to get a few stages in without tinkering and enjoy the game.
Has no one else seen this issue at all?
