Reverting everything beyond step 5 of the STEP guide and repeating the LOD set up, xLODGen, TexGen, and DynDOLOD sections had no effect. I also ensured that the two TEMP mods were both enabled and disabled correctly. I'm not sure what the issue may be if it isn't related to LOD overlapping.
Further example following the attempted fix: https://100percent.black/f/AlkF.png
Quitting and reloading: https://100percent.black/f/BBj1.png