Hi,
As this feature enables you to switch objects based on distance from the camera, any camera needs to be properly assigned. Please see attached screen-shot.
If wanted, you can use the pivot point of the object assigned in the
Look-At Target slot as the origin for the
Max Distance measurements (to enable it, select the
Use Look-At Target check-box). This allows you to separate the camera and origin used for all LOD calculations.
Hope that helps.
Best regards,