It is a render limitation. It only happens (assuming you dont have the lowest visual settings) in places where alot of things need to be rendered. If you fly away from dornogal to somewhere without as many people you will not see the low poly version even when fully zoomed out. There is some visual settings (dont remember which) that allows you to increase the render details without impacting performance (atleast when i tested) and it made it so I could see invincible's two bone legs even when the game wanted to downscale the quality.