UPDATE: Sebastian Wloch from Asobo Studio revealed on the latest Developer Q&A Live 9 that the long-awaited trees draw distance bug related to latitude is finally fixed with Sim Update 5 which is coming on July 27. The trees draw distance with Sim Update 5 by default is the same as you would be using the good-old Trees Draw Distance Fix before Sim Update 3 broke it.
On February 16, 2021, Sim Update 3 made an undocumented change to the Microsoft Flight Simulator that disabled all the trees draw distance add-ons from working anymore. The first image below shows how awful the World Update 5 looks in the Nordics because we are still waiting for the official fix by Asobo Studio. The trees draw distance in the Nordics by default is less than 4 nautical miles nor 10 nautical miles like Asobo Studio stated on the Developer Q&A Live 8. The Equator in Colombia gave me a trees draw distance of 8 nautical miles with a TERRAIN LEVEL OF DETAL value of 125. Meanwhile, in the Nordics, less than 4 nautical miles only.
On June 30, 2021, revealed by Sebastian Wloch from Asobo Studio on the latest Developer Q&A Live 9, the long-awaited trees draw distance bug related to latitude is finally fixed with Sim Update 5 which is coming on July 27. A discussion about trees has been hot for months at the official MSFS Forums and we have been making bug reports of it regularly. The bug is the following, trees draw distance decreases on the way from the Equator (10 nautical miles) towards the North/South Poles (less than 4 nautical miles), meaning the trees draw distance bug is somehow related to latitude.
The second image below shows the same location in the Nordics with the Flight Simulator Blog’s freeware Trees Draw Distance Fix in use before Sim Update 3 broke it. The trees draw distance using the fix was 8 nautical miles with TLOD 125 and 10 nautical miles with TLOD 200. For now, in the graphics settings, both options TERRAIN LEVEL OF DETAIL and TREES will affect the trees draw distance. Although TERRAIN LEVEL OF DETAIL value 200 will draw the trees furthest, it’s recommended to use not more than 175 to avoid stutters on most of the systems at least until Sim Update 5 is released.