Hiya. This dress from the Prairie Dreams Kit (pictured with no mods), while being adorable and suitable for period-specific gameplay looks like it does not use LOD 0, regardless of how close one is to a sim wearing it. This is most evident by the hands of a sim, which is how I came across it: watching a sim play piano.
The issue persists regardless of swatch, age, frame selected, accessories, hairstyles, and other clothing objects.
In Sims 4 Studio:
