Yes, I can confirm the generated normals are not correct. I believe shadows are cast correctly but the mesh is not lit properly. I found the same issue in this thread. Note I mentioned this is the other thread: Generate Smooth Normals causes tile artifacts - #2 by janine
“So If I generate the terrain at the Hawaii coordinates Lat: 21.3115 Lon: -157.6625 then the normals are not facing up. If I set the time to say 4pm, then the normals don’t recieve any light. If I set the time to 9am (Sun at the horizon) they receive full light from the directional light. A good way to test it is to turn off the environmental lighting Intensity Multiplier to 0 to see how the directional light is hitting the terrain. Depending where you are on Earth the lighting is always usually wrong.”