Earlier quoted context omitted.
Yeah, shaders aren't the problem with Oblivion; the problem with Oblivion is that when you move to a new scene everything looks like it's made of enormous triangular things until the rendering catches up, which on my machine can take five seconds or so. If this is typical for Unreal 5 it's what I'd call a deprovement (rather than an improvement).
I get something similar to the artifacts you mention; i think the fix is to delay actually drawing the world until it's truly finished loading, but i'm no AAA game company. Either way, something about the remaster makes me fatigued playing it. I might try turning off all AI and motion blur and go for higher FPS and see if that helps. It isn't the only game that does this to me, but i find with games from the 8 and 16…
But IIRC this was a problem with the original too, not something I can blame on Unreal 5. :-)