Issue with "Draw Instanced" and Custom Shader Graph Material on Terrain

I’m facing an issue when trying to enable the “Draw Instanced” option on my terrain in Unity. I have a large terrain model spanning 15-50km wide, and I’d like to take advantage of the “Draw Instanced” feature to make it look more detailed at a distance.

However, when I replace the default “Default Lit” material on the terrain with a custom shader graph material that uses a splatmap to texture it, the terrain model seems to have rendering issues. Instead of showing the terrain, I see random polygons flashing in the scene.

Is there a way to work around this issue or ensure compatibility with “Draw Instanced” while using a custom shader graph material on the terrain?

Thank you in advance!

Unity version: 2022.3.9f1