I've recently noticed that there is a problem with the override material, but as far as I can tell, the problem is in the render engine. Just let me know if you confirm the following or not:
1. exporting with override specified and enabled works
2. enabling has no effect, if it was disabled at export
3. switching it on/off or changing the MXM has no effect
I haven't heard the suggestion for skipping glass materials (where do you draw the line?), but emitters should automatically be excluded (that is, not overridden) inside the engine. I confirm that it works that way here, anyway.
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If I export to studio it only works in certain circumstances. Under normal conditions it only works here and there because if you have a group with more than one material it creates submaterials in Studio which aren't affected by Override Material (which seems odd to me).
Seems like a bug to me -- I assume that override should override.
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So you have to choose 'separate by face' in the plugin, but since there's no universal option for that
This is changing; it (Hide-from-x and UV Override, too) will operate by inheritance in the future.