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Does anyone know why my tiny 8m road looks like this in-game? The pavements bleed into the road (bottom screenshot) but in asset editor they look absolutely fine (top screenshot)... it's driving me crazy"
Normal maps don't work with Basic, you have to switch to bridge shaders to make it work, so you can't use the alpha channel to make the ground texture appear.
The textures also look error-free.
Are the textures absolutely congruent to the UV mesh?
Set the Building-Height to 0 instead of 0, to 0.001, it can happen that the roadsides interact with the ground and so display errors occur.
Found your problem with the roadside waves, too.
Problems can occur with road widths below 8 meters, here you have to experiment with the parameter "Half Width".
For example, the road should be 6 meters wide, for "Half Width" you would enter 3, the problem is the surrounding terrain, that protrudes a bit into the road.
A value of about 4.4 - 4.6 can help.