distance fields ambient occlusion problem causes flikering

Im getting some problems using distance fields ao ambient occlusion blobs that flickers continuously both in edit and game mode

Not sure why this problem occurs and as there has been a major hit to the performance as well

I see Daniel answered your question over here on the forums: Some DFAO troubles weird flickreing shadows - Rendering - Epic Developer Community Forums

Daniel W:

These artifacts in DFAO are from
aggressive optimizations needed to
make it realtime. Hopefully something
we can improve in the future.

You can improve the quality with
‘r.aorecordradiusscale .1’ or smaller
but it will increase the cost of the
method.