BatchRendererGroup complains that ShaderGraph shader lacks DOTS_INSTANCING_ON variant

Unity Engine
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The new Unity water system raises the same error: A BatchDrawCommand is using the pass “StencilTag” from the shader “Hidden/HDRP/WaterExclusion” which does not define a DOTS_INSTANCING_ON variant.
This is not supported when rendering with a BatchRendererGroup (or Entities Graphics). MaterialID: 11 (“MaterialWaterExclusion”), MeshID: 5 (“Quad”), BatchID: 1.

I have defined #pragma multi_compile _ DOTS_INSTANCING_ON in WaterExclusion.shader, and problem solved. Why does this shader not define it by default?