Inconsistent texture loading issue within material editor

A licensee has reached out via EPS about a texture loading issue they are having in-editor. I summarized the most important points below:

• The issue relates to texture load failure associated with material compilation.

• Textures appear invisible or grey/default in-editor and PIE.
• The problem persists even after merging the suggested fix manually:

• • Commit merged: UnrealEngine Commit

• The issue occurs with and without Oodle compression enabled in the editor.

• Attempted workarounds (e.g., deleting Zen and DDC directories on VFX team workstations) were ineffective.

• The issue also occurs in micropatch builds, but is not observed in packaged builds.

• Inconsistent reproduction. Intermittent behavior where textures sometimes appear and other times do not.

• Opening the affected texture asset manually resolves the display temporarily.

Unfortunately, the licensee has not had the chance to provide a consistent repro. I have asked them if they can provide some steps to narrow this issue down, and will update this ticket once I hear back from them.