I’ve also observed spikes appearing on areas of modified terrain (Orbx Auckland Landmark Pack), only when approaching from one direction (the west in this case).
Terrain Level Of Detail has some impact on how these spikes present.
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High LOD (400) results in fewer deformations being visible, but they are larger and sharper.
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Low LOD (100) results in more deformations being visible. They are softer and appear at greater distances.