Thanks, I removed the terrain script component from terrain objects and now the max_instances setting behaves as expected! Some number (which I would guess to be hidden, not configurable) seems to be limiting the number of instances of a script that can be created. That explains “Could not create script component, out of resources.” Adding a script component to the object instantiated a lot repros it like you suggested. I hope there’s some sort of workaround or fix for this, for now I’ll leave the terrain zoomed in.