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They will, I think it was a bit odd with the LOD popping in the video, Mariina put us just far enough that they wanted to be seen but not really.

Something that WILL pop in and out of nowhere is when they go into a garage - or as I showed on the stream - when a train "spawns" on the station. We have no animations for many of those things at launch. Just want to set expectations straight :)

It isn't a bug just too little time and too much to do ;)