sheson

If you have NGIO set to only load from cache, it will not find any files, since the flag was still set when it was generated.
You can change settings so it generates cache files on demand.
The flag not being unset in Occlusion.esp will be fixed in the next alpha version.

The HPP replace the full model which then uses a different texture path. The LOD model uses a rendered texture that keeps using the vanilla stonewall texture path, which is more grey than the brownish one from HPP.
Next alpha version + next DynDOLOD Resources will address this. It will still be the same low res model, but at least the diffuse texture color should match better. It will then also work with the Rock Wall Texture replacement.

Check if this test version of DynDOLOD fixes it https://mega.nz/file/9RBwhB7A#Phv0FkY7MqncuumOQ_LHcitoM-rp-we9rU_lcOSIpLg
Report results. If issue persists upload new DynDOLOD logs.

Thanks.
Test generating a LOD patch with occlusion with this test version of DynDOLOD https://mega.nz/file/4UgGCZyS#fUL-ZguHbBj6LNufacgzEeUkD4hfIeSo7izaXxuzVak
Then check the cell record again if it contains the expected water record and check visuals in the game are as expected.
If not, upload new logs.

Delete all old logs and bugreport.txt. Restore to the default TexGen_SSE.INI if there were any changes made to it and check what happens with this test version https://mega.nz/file/kYRQSKia#7fOkTxEn8gj_o4kS8hRmi2tx5E66mb1cJbSF-5uyLi8
If it complains about Texconvx64.exe, download this version https://mega.nz/file/QV4w1YRY#vHCnSwg69AOLZOB1BpErWV2Tki7wDaq_UH7xDM4WfIY and replace it in the Edit Scripts folder.
If there still is a problem with the default settings, add GLDebug=1 to TexGen_SSE.ini and run again. Upload new TexGen log, debug log and bugreport.txt if it exists.
Then test if adding RenderSingle=1 under [TexGen] in ..\DynDOLOD\Edit Scripts\DynDOLOD\TexGen_SSE.ini makes a difference.
If not test if adding RenderTextureSingleThread=1 makes a difference.
If not test if adding RenderBillboardsSingleThread=1 makes a difference.
Do one change/check at a time.
Report results no matter the outcome.
The links in this post are updated once in a while as troubleshooting progresses. So redownload if you have issues with a version from a few days ago. See end of the thread posts.

Looks like a known issue with the light version of the mod Vantage - Immersive Exploration (Surveying). You may want to use the ESP version.

The screenshot shows that object LOD meshes from the DynDOLOD output are being overwritten by files in the MO2 Overwrite folder.
The files from DynDOLOD output that are overwritten will never be used by the game.
There should never be any LOD files in the MO2 overwrite folder at any point when following instructions of tools properly. Best to delete them.
The overwrite order of mods/outputs that have no conflicting files is irrelevant.
https://dyndolod.info/Installation-Instructions
Install the Core Files from either DynDOLOD Resources or DynDOLOD Resources SE depending on the used game version as any other mod. Typically overwrite everything else unless another mod specifically instructs to overwrite DynDOLOD Resources. Refer to Load/Overwrite Orders for detailed explanations.
https://dyndolod.info/Help/Load-Overwrite-Orders
https://dyndolod.info/Generation-Instructions
Typically generate and install terrain LOD meshes and textures with xLODGen before generating the LOD mod with DynDOLOD
It seems you generated more than just terrain LOD with xLODGen. There is no reason for that when using DynDOLOD to generate tree and object LOD. Again, make sure DynDOLOD output overwrites everything and none of its files are being overwritten.
https://dyndolod.info/Generation-Instructions#1-Generate-The-Required-LOD-Assets-with-TexGen
Install the contents of the output path or the *.zip archive as a mod. It should overwrite everything.
https://dyndolod.info/Generation-Instructions#2-Generate-The-LOD-Mod-with-DynDOLOD
Install the contents of the dedicated output path or the *.zip archive as a mod. It should overwrite everything.

See https://dyndolod.info/Official-DynDOLOD-Support-Forum#Post-Logs which logs to upload when making posts.
https://dyndolod.info/Official-DynDOLOD-Support-Forum#In-Game-Screenshots
"This" is not a problem description.
What parts of the screenshot do you have issues with or want to improve?
https://dyndolod.info/Generation-Instructions#Prerequisites
Typically generate and install terrain LOD meshes and textures with xLODGen before generating the LOD mod with DynDOLOD

Download this test version https://mega.nz/file/0Jwj1SbQ#hRS13oCP3Wz1_owUhBLGmy-bOa2tiC-jbHLOugVmy8E of LODGenx64Win.exe and replace the one in the Edit Scripts folder.
Then generate LOD or Execute LODGen for Tamriel in Expert Mode to just update the object LOD meshes. See https://dyndolod.info/Help/Expert-Mode
Report if it makes any difference.

Generating better higher resolution terrain LOD meshes with xLODGen should fix that.
https://dyndolod.info/Generation-Instructions#Prerequisites
Typically generate and install terrain LOD meshes and textures with xLODGen before generating the LOD mod with DynDOLOD
https://dyndolod.info/Help/xLODGen

You provided the requested logs and screenshots just fine.
The last session reported in the DynDOLOD log and debug log shows you starting DynDOLOD but not generating any LOD patch.
The second to last session shows an unsuccessful generation - there is no "DynDOLOD plugins generated successfully" as explained in https://dyndolod.info/Generation-Instructions#2-Generate-The-LOD-Mod-with-DynDOLOD. The LOD patch including the plugins is not valid and is probably incomplete/missing required records - like flagging newly added references in DynDOLOD.esm as large references.
Error: One or more errors occurred <[CELL:000BCDDB] (in Sovngarde "Sovngarde" [WRLD:0002EE41] at 26,33) Error while updating TVDT data: Access violation at address 0000000000D05B42 in module 'DynDOLODx64.exe' (offset 835B42). Read of address FFFFFFFFFFFFFFFF>
Check the cell in xEdit for errors.
Th CPU, cooling, memory, PSU etc. might be unstable.
Also you are setting uLargeRefLODGridSize to an insane value of 21. Stay with in 5 to 11 or so.
Only use the output if everything (the plugins and all LODGen) generated successfully.

Test this. Put trunks into the same "LOD" folder as the passthrus.
DynDOLOD_SSE_Update-CRC32.pas

Overwrite.esl is an example plugin for the documented large reference bugs of Skyrim Special Edition and should obviously not be installed as part of a normal DynDOLOD installation.
For DynDOLOD 2.x, read the included manual how to install the DynDOLOD standalone and everything else. Start with DynDOLOD_QuickStart.html.
If using DynDOLOD 3, see https://dyndolod.info/Installation-Instructions
Use 7-Zip to unpack the DynDOLOD Standalone archive into a new and empty 'DynDOLOD' directory that is outside of special OS folders like 'Programs Files' or 'Program Files (x86)', User, Documents, Desktop, Download and also not in SteamApps, game, Data or any mod manager folders. For example C:\Modding\DynDOLOD\.
Use a proper mod manager like MO2 or Wrye Bash.

The answer depends on what mod manager you are using and how you installed the TexGen output and is not related to the tools itself.

The crash log shows [FE] DynDOLOD.esp
That is one full plugin too many.
https://dyndolod.info/Messages/Plugin-Limit
Skyrim Special Edition, Skyrim Anniversary Edition and Enderal SE have a total limit of 254 (0x00 to 0xFD) full plugins (ESM + ESP) and 4096 light plugins (ESL), which use 0xFE as the load order form ID.
Since Occlusion.esp only contains overwrites it is always flagged a light plugin by xLODGen/DynDOLOD.
0x00 to 0xFF is 256 plugin slots.
0x00 to 0x0FD is 254 slots
0xFE is the 255th slot
0xFF is the 256th slot.
https://dyndolod.info/Messages/Plugin-Limit
The game engine uses the first byte (the load order form ID) of the 4 byte form ID to determine the plugin load order. A byte goes from 0 to 256, 0x00 to 0xFF hexadecimal. The game uses the load order form ID 0xFF for save game and temporary data. Skyrim Special Edition, Skyrim Anniversary Edition and Enderal SE have a total limit of 254 (0x00 to 0xFD) full plugins (ESM + ESP) and 4096 light plugins (ESL), which use 0xFE as the load order form ID.
Mod managers like MO2 (hover over the number of total active plugins top right on the Plugins tab) or Vortex (top right on the Plugins tab) can show the total number of ESM+ESP and ESL plugins.
The sweet spot is 254 total full plugins. DynDOLOD.esm and DynDOLOD.esp require two slots, so 252 when starting DynDOLOD the first time to generate the plugins. Total full plugins means all ESM+ESP as explained. That includes all full game plugins, starting with Skyrim.esm at load order ID 0x00, Update.esm at 0x01 etc.

Read https://dyndolod.info/Mods/Skyrim-Special-Edition-GOG-Skyrim-Anniversary-Edition-GOG
Do not link to files or folders in mod manager profiles. Link to the files and folders used by the game.
Make sure folders end in slash \.
Make sure the paths to folders or files are enclosed in double quotes "
Do not link to MO2 profile folders. Link to the actual paths or files the game uses. This works if the commands line arguments are set correctly.
There is not need to set the save folder with -g for TexGen or DynDOLOD.
If there are still problems, copy and paste the actual line from the arguments field in MO2 without editing it.

Open the DynDOLOD SkyUI MCM Settings https://dyndolod.info/Help/Mod-Configuration-Menu#Settings and increase fTreeLoadDistance to at least a 100,000 or more.

Read https://dyndolod.info/Official-DynDOLOD-Support-Forum#Post-Logs which entire DynDOLOD log and debug log to upload when making posts.
Do not post screenshots of messages, use the Copy message to clipboard link and paste the text instead, as explained at https://dyndolod.info/Official-DynDOLOD-Support-Forum#Copy-and-Paste-Text
Error: No Editor ID
If you can not find the MarkarthWorld worldspace record with the form ID 00016D71 in Skyrim.esm, then there is really something wrong with the load order / Skyrim.esm or how you are loading it in xEdit.
If you mean you can not find the cell record 2602F511 in DynDOLOD.esm, then you will need to adjust 26 to whatever the file ID of DynDOLOD.esm is when it is loaded into xEdit.
How is making a post on an unrelated discord relevant?
See https://dyndolod.info/Installation-Instructions and https://dyndolod.info/Generation-Instructions.
If the error happens while trying to update an existing LOD patch, generate it from scratch instead, as suggested by the confirmation message about updating existing DynDOLOD plugins.

https://dyndolod.info/Help/Child-Parent-Worldspace-Copies explains how the problem is not missing LOD but deliberately omitted full models and that checking the parent > child option can be used to automatically add copies of full models from the parent worldspace to the town child worldspace to improve the visuals.
https://dyndolod.info/How-LOD-Works

DynDOLOD generates LOD for the selected worldspaces. Only worldspaces of enabled plugins are available at generation time.
 
Many mods adding new worldpspaces also change things in the vanilla worldspaces.
 
If mods are only enabled for LOD generation but not in the game it means that the LOD will not match the current load order. 
 
So, mods adding new worldspaces that are enabled while generating LOD can be masters in DynDOLOD plugins. If LOD for a new worldspace is generated it most definitely will be a master in a DynDOLOD plugin.
 
Generate LOD for the current load order. After adding new mods, try to update existing DynDOLOD as explained in the manual. If that doesn't work, generate DynDOLOD from scratch.

https://dyndolod.info/Help/xLODGen#Requirements
Remove or disable the plugin after terrain LOD generation. No harm done if loaded in-game. Typically the player can not get close to these areas. There are no effects outside the far away added cells.
DynDOLOD will tell you to remove the restored terrain plugin in case it is still active.
If you installed special landscape textures that are for terrain LOD generation only, then they need to be removed afterwards as instructed by the 3rd party mod instructions.
Terrain LOD generation does not use or care about object LOD or tree LOD assets like billboards. They should be active before and after generating object and tree LOD as explained:
https://dyndolod.info/Generation-Instructions
Keep all LOD assets (DynDOLOD Resources, 3rd party mods, TexGen output etc.) that were active for LOD generation activated unless there are specific instructions to disable 3rd party mods. Object LOD and tree LOD assets may also be used directly in the game like any other models and textures, in particular by dynamic LOD or Child/Parent Worldspace Copies.

From the DynDOLOD log:
<Error: Game runtime version 1.6.640 does not support plugin _ResourcePack.esl version 1.71 with form ID < 0x800. Install Backported Extended ESL Support _ResourcePack.esl RP_DweRmLgMid01_DetailedCeilingCollision [STAT:FE012001]>
You need to install Backported Extended ESL Support
That should make the game be able to load all plugins in the load order, including the generated DynDOLOD.esm, DynDOLOD.esp and Occlusion .esp.

The next alpha will include the fix of mipmaps sometimes being too bright.

By default every program uses the temp folder defined by the OS, so does xEdit, xLODGen, TexGen, DynDOLOD.
https://www.google.com/search?q=windows+change+temp+folder
A custom temp folder can be set via a command line switch. See https://tes5edit.github.io/docs/2-overview.html#CommandLineSwitches
For example -t:"c:\Path\to\temp\"
 

https://dyndolod.info/FAQ
https://dyndolod.info/FAQ "DynDOLOD requires SKSE"
SKSE is not installed, outdated or not running at all.
Make sure you have the correct SKSE version for the current Skyrim version that is used and none of its file are overwritten by other mods.
Check the logs in c:\Users\[USERNAME]\Documents\My Games\[Skyrim|Skyrim Special Edition|Skyrim VR]\SKSE\
The papyrus script function SKSE.GetScriptVersionRelease() does not return the expected value, which means SKSE is not installed, outdated or not running at all.