Sorry to bother you but I noticed that DynDOLOD.esp added the Has DIstance Lod tag to many statics, yet the texture sets is not carried over from Skyrim.esm, leading color changes to many statics, for example, the texture of TundraPond01.nif.
https://i.imgur.com/emujdVg.png
Sir, just digged up little more and finally solved the problem: the wall uses DynDOLOD_Tamriel.dds, which is messed up by me because I forgot to install Texgen as a mod before generating DynDOLOD. Sorry for the inconvenience.
Sir, although the wrcitywall01lod.dds is generated, the whiterun wall lod is still not correct:
Or maybe it doesn't use wrcitywall01lod.dds at all? Digging into the DynDOLOD Resources a bit and I couldn't find a lod mesh that fit the city wall