Instantiating a smart material breaks micro details

After some frustration and testing, I found that instancing a smart material breaks the micro detail. It makes sense I suppose, because other texture sets wouldn't inherit a foreign anchor point.

Not sure how to resolve this. Maybe anchor points expose a paramter in the instance that can be toggled or re-assigned? It could be displayed in the instance property window?

Attaching a Google drive link because this forum doesn't recognize the url for embedding