Workaround: UE4 appears to handle Mat IDs in the same way Maya does. This is somehow based on the objects position, scale, or bounding box. Organizing ID set in order from largest to smallest in Max before exporting will result in proper order generation in UE4.
Versions tested:
4.19.2 - CL 4033788
4.20.2 - CL 4302132
This appears to be a regression as the issue does not occur in 4.19.
Result: Material order on the LOD will change and the materials in the viewer will be on the wrong location of the mesh.
Expected: Materials will appear in their correct location on the mesh.
There's no existing public thread on this issue, so head over to Questions & Answers just mention UE-64028 in the post.