Thank you for the clarification, now I understand.
The reason for my misunderstanding is due to me not understanding how NGIO works, as I was thinking that perhaps when doing Grass Cache placing the grass it would require the textures to already be done.
Thanks again for the answer to my question
What is the correct order for Grass LOD?
Grass Cache
Terrain LOD
TexGen
DynDOLOD
or is there another order? ex
Terrain LOD
TexGen
Grass Cache
DynDOLOD
Terrain LOD
Grass Cache
TexGen
DynDOLOD