Landscape material normals

Hi, I have been fighting this for quite some time, tried googling and searching wherever to no avail.

Trying to create a landscape material containing 3 layers(for now) grass, rock and forest. I have two sets of textures for each layer that I do blend together as [WorldAlignedTexture][1]s using the output of Distance_Blend as an alpha.

Everything works great for the Base Color textures. My issue starts when I try to add Normals to the texture(or Roughness - ends up roughly the same). I am using the [WorldAlignedNormal][2] function to get the world aligned normal. And again everything works great until you try to layer blend 3 different Landscape layers.

This is what happens:

The normals blend ok when only two layers meat, but once they cross even by an offset I do get these tangled meshes.

I am pretty sure I am doing something stupid here but I have tried different ways of PixelDepth blending the Normals and nothing seems to work. I tried going as simple as possible, everything works OK up until I try to do the Lerp from using the Distance_Blend alpha.

The full material is here: Landscape material posted by aknarts | blueprintUE | PasteBin For Unreal Engine 4