I was a bit confused as what exactly happens when changing the normal map format under project setting do.

I can change them live but the viewport shading stay the same. After a big of digging I figured it out, the answer is actually quite simple.

On the export template there are the Input maps - Normal and two converted maps one of DirectX the other OpenGL.

The Normal follows whatever setting the project setting is under. The Converted map, as expected, are not affected.

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