I don't know if you would call it bugs or just progression of the engines development. I had tried it and it worked. I will open my test map in 1.0045 and see if it still works.
Give me a few minutes and check back.
Edit:
It appears not to change when you change it in the fpe file, erase the dbo file and retest. Still changes at the apparent distances of the originals.
He is my fpe file.
;header
desc = GeoSpere_LOD
;visualinfo
textured = color_d.dds
effect = effectbank\reloaded\entity_basic.fx
castshadow = 0
;orientation
model = GeoSpere_LOD.x
offx = 0
offy = 0
offz = 0
rotx = 0
roty = 0
rotz = 0
defaultstatic = 1
materialindex = 3
collisionmode = 1
;statistics
strength = 0
explodable = 0
debrisshape = 1
;ai
aiinit = appear1.fpi
aimain = default.fpi
aidestroy = disappear1.fpi
;spawn
spawnmax = 0
spawndelay = 0
;LOD System
disablebatch = 1
lod1distance = 1000
lod2distance = 1500