Hello! I've been using VAT soft in unreal recently, and have found an issue with normal rotation when using Instanced Static Meshes (example gif of incorrectly transformed normals below)



Apparently unreal's transform node only accounts for per-instance transformation in the Vertex shader, and Sidefx's VAT Soft material function uses it in the Fragment shader.
The fix I found for the incorrect normals was to move the local->world normal transformation from the fragment to vertex portion of the shader (as indicated in the image below)



Hopefully anyone else encountering this issue finds this helpful!