Bug Shadow Issues with custom Camera Matrix

(CASE IN-9123) (Using URP 12)
I'm having issues with realtime shadows when using my custom camera worldToCameraMatrix.

My goal is to have a camera projection that will make the game look top down 2D but allow for shadows, depth etc. - by using planes standing straight up but rendering facing camera. I got this from this article: https://www.gamedeveloper.com/programming/adding-some-perspective-to-your-unity-2d-game-

I have the camera projection setup as I want it, but there is a problem with shadows not rendering at all when camera goes past a certain distance from the world center. In certain spots one can clearly see the shadow sphere as well.

This is how I change camera projection:

Code (CSharp):

1.   public class CustomProjection : MonoBehaviour
2.     {
3.         [SerializeField] private bool _resetCameraMatrixOnEnd;
4.         [SerializeField] private Camera _camera;
5.         [SerializeField] private Vector4 _matrixYOffset = new Vector4(0, -1, 1, -0.1f);
6.         [SerializeField] private Vector4 _matrixZOffset = new Vector4(0, 0, 0, 0);
7.  
8.         private void Start()
9.         {
10.             _camera = GetComponent<Camera>();
11.         }
12.  
13.         private void OnEnable()
14.         {
15.             RenderPipelineManager.beginCameraRendering += OnBeginCameraRendering;
16.             RenderPipelineManager.endCameraRendering += OnEndCameraRendering;
17.         }
18.  
19.         private void OnDisable()
20.         {
21.             RenderPipelineManager.beginCameraRendering -= OnBeginCameraRendering;
22.             RenderPipelineManager.endCameraRendering -= OnEndCameraRendering;
23.             _camera.ResetWorldToCameraMatrix();
24.         }
25.  
26.         private void OnBeginCameraRendering(ScriptableRenderContext scriptableRenderContext, Camera camera)
27.         {
28.             SetMatrix(camera);
29.         }
30.  
31.         private void OnEndCameraRendering(ScriptableRenderContext scriptableRenderContext, Camera camera)
32.         {
33.             ResetMatrix(camera);
34.         }
35.  
36.         private void SetMatrix(Camera camera)
37.         {
38.             if (camera != _camera && camera.cameraType != CameraType.Game)
39.                 return;
40.        
41.             var matrix = camera.transform.worldToLocalMatrix;
42.             matrix.SetRow(2, -matrix.GetRow(2));
43.             matrix.SetColumn(1, 1e-3f * matrix.GetColumn(1) - _matrixYOffset);
44.             matrix.SetColumn(2, matrix.GetColumn(2) - _matrixZOffset);
45.             camera.worldToCameraMatrix = matrix;
46.         }
47.  
48.         private void ResetMatrix(Camera camera)
49.         {
50.             if (camera != _camera && camera.cameraType != CameraType.Game && _resetCameraMatrixOnEnd)
51.                 camera.ResetWorldToCameraMatrix();
52.         }
53.     }

Camera settings:


I've also attached the small test project and moving the camera around should show the shadows popping in and out clearly.

Not sure if this is a bug or if Im misunderstanding camera projection and it should be done in another way.
Any help would be appreciated, thanks!

 

Bump
Also, it seems that URP and the standard RP have different results/behavior. So if any moderator sees this, feel free to move it to the URP section.