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In the Editor terrain is not rendered correctly when "Draw Instanced" on custom shader is enabled



How to reproduce:
1. Open attached project "NewDepthProject" and scene "Main"
2. In the Hierarchy window, select "Terrain" object
3. In the Inspector window, "Terrain" component select "Terrain Settings" icon
4. Make sure "Terrain" -> "Basic Terrain" -> "Draw Instanced" is enabled
5. Enter Play mode
6. Observe Game View

Expected result: there are no visual differences between enabled and disabled "Draw Instanced", the terrain is visible
Actual result: the background becomes white, the sphere becomes black, the terrain is not visible

Reproducible with: 2018.3.13f1, 2019.1.0f2, 2019.2.0a12
Could not test with: 2017.4.26f1 due to the "Draw Instanced" not yet implemented

  1. Resolution Note (2019.3.X):

    Terrain instancing is not supported in Shader Replacement mode. I don't think we want to invest into this because:
    * Shader replacement is an ancient feature. SRP provides a much powerful alternative to the solution.
    * For a simple use case such as this one, it's better to just use the camera depth texture, which supports terrain instancing.
    * Terrain rendering will become much different once Environment package is shipped.

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