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Fixed in 5.4.1
[Instancing/Batching] If shader supports instancing & objects marked static: neither static batching nor instancing happens
Ideally for objects marked as "static" (including "batching static"), either GPU instancing should work, or static batching should work.
Currently if you have instanced shader & objects marked as static, neither works, and the rendering silently falls back to rendering them one by one.
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