I ran into the same issue recently and might have some insight that could help.
It turns out Houdini (when using Karma, especially XPU) often converts your image textures (like .exr, .png) into .rat files behind the scenes. This is meant to optimize render performance and texture handling — but the conversion doesn’t always happen instantly or predictably.
In my case, I saw the same displacement artifact you're getting — but when I disconnected and reconnected the texture input (or reloaded the file), the issue disappeared. That probably forced Houdini to refresh the .rat conversion and re-evaluate the texture.
I’m attaching a screenshot of a simple working setup (texture on a grid using Karma XPU) in case it helps you troubleshoot or compare!
Edited by Italimpex Productions - May 8, 2025 13:30:27
Your displacement is set to 'Vector3'. Unless your image is a vector displacement texture it should be set to "Float" so Houdini doesn't treat the greyscale image as vector displacement.
Well, just for the record the issue resolved today by itselft when I started to move the offset controller - which is basically a mtlxremap node . Displacement went from skewed to perfect all of a sudden. Don't know, maybe something was forced to recompile at that same moment. It looks beatifull now. Btw, playing with Float, Vector2, Vector3 did not fix the issue, but only when I touched remaping the displacement straightened itselft. Maybe a bug.