Can confirm this.

If you set foliage smoothing to enabled and apply it works - trees and grass have smoothing applied. However if you close the game next time you start it up foliage smoothing will not apply to the trees, even though the settings still show foliage smoothing is enabled.

It means you need to disable and enable foliage smoothing every time you launch the game.

Windows 10. Version 17763.

To add to this, re-enabling the foliage smoothing also turns my gamma up which is already too high. I really wish I could turn my gamma down in game. Everything looks way too washed out with it this high. The only other option is to use borderless fullscreen, and that results in stuttering and input lag.

Any word on this being fixed. It's still broken as of 12/5/2019 after the 1.06 update.