I am just about to close out Chapter 8 and I don't think the LOD textures are a glitch - I saw them earlier in the other highly populated areas topside and near Sector 7 as well. I think it's just a reality of the PS4's hardware limitations mixed with the asset quality and animation density the game is trying to push. I vaguely remember FFXV looking the same. That being said, the art direction is is genuinely incredible that it hasn't bothered me at all whatsoever.
That's one of the best things about the game. The super eclectic art direction from the original is preserved but also executed masterfully. In a game less well directed seeing a guy in a turtleneck tanktop, suspenders, and a big sword walking through what is effectively a mashup of Chicago and London would look.... Schizophrenic at best. But Midgar is a beautifully realized place, feeling both lived in and naturalistic.
There's a lot to say about this games extensive use of naturalistic art design and dialogue. Aside from the typical anime grunting here and there, most of the dialogue is astonishingly conversational. People cuss without gravitas, which is a weird thing to praise, but the script genuinely seems to understand how people speak. Characters stutter, mumble, speak too loudly at times, swear casually, and flow from topic to topic extremely fluidly. It is very, very impressive for an in-house Square Enix script.
13 hours in and I am really, really pleased with this games overall I production design and pacing. I am dreading the end and I am not even halfway done.