Create two materials as shown in the images and apply both
Enable texture streaming for the used textures
Start the UE4Editor.exe with -game (issue does not always appear in PIE)
Using ComputeMipLevel makes the textures stream incorrectly, resulting in blurry textures. This happens 100% of the time (when not in PIE).
Tested on two separate systems (one with a Nvidia and one with an AMD GPU).
I apologize that we missed this issue. We are going through the AnswerHub searching for missed issues now. Can you let me know if this is still occurring for you in 4.2? If so, please add your DxDiag and log files. Your log file can be located in your [Project Name]/Saved/Logs folder. Please let me know if your require any additional assistance.