Shading issues with world aligned normal

The material function is causing shadows and highlights to be added to an object as if it were a cube. Below on the right is a sphere with a cube shadow on the base, the left is standard uv for reference. How do I get world aligned normals without the strange shading?

Hi, I am looking at the custom node for world-aligned normal and I feel something is wrong with the projection transition contrast. Any number bigger than 0 will mess up the shading. Even a 0 is not so good-looking. I guess someone from the Epic should have a look at this one.

Here is mine with a transition value of 3