Landscape nanite height mismatch

From licensee:

The height of Nanite rendered landscape does not match the height of non-nanite landscape. The error gets worse if you increase the Z Scale of the landscape actor.

Our project recently upgraded from UE5.1 to UE5.2. We quickly noticed a problem with small grass and foliage meshes either floating or positioned under the landscape, by around 10 cms in places. Enough to be problematic with small detailed foliage meshes. Our character's feet were similarly seen to sit above or below the Nanite enabled landscape. Entering the console command 'landscape.RenderNanite 0' immediately gets everything to appear sitting perfectly on the landscape.

• Create a new 'Open World' default map.
• Scatter lots of small colorful sphere meshes to sit on the landscape - 2cms to 10cms diameter.
• Zoom in very close and see that the spheres sit perfectly on the landscape.
• Select the landscape actor and set the 'Enable Nanite' property. Click the 'Build Data' button.
• Observe that some sphere meshes now float, some are sunken into or under the landscape - by around 2cms.
• Enter the console commands landscape.RenderNanite 0 and landscape.RenderNanite 1.
• Observe the spheres sit perfectly on the landscape when landscape nanite rendering is disabled.