Reproduction steps:
1. Download and open the attached "TerrainTreeColor.zip" project
2. Open the "TreeInstanceColor" scene
3. In the Hierarchy window, select the "Terrain" GameObject
4. In the Inspector window, select "Paint Trees" > "Tree-Spruce-Dense-Medium"
5. In the Scene window, place one tree submesh close to the camera and one further away

Expected result: Both tree submeshes are rendered identically
Actual result: The tree submesh that is further away from the camera is rendered in a different color

Reproducible with: 7.7.1 (2019.4.31f1), 10.6.0 (2020.3.20f1), 11.0.0 (2021.1.24f1), 12.0.0 (2021.2.0b14), 13.0.0 (2022.1.a011)

Notes: 2020.3 and up, the further tree submeshes are rendered with broken shaders instead,
Also reproducible with URP