I think I've found a bug with decal roads but this is related to my mod, its hard to tell if this is present in the base maps or if its some setting I've got messed up: Just to give a description of what's happening here, using either material V1 or V1.5 results in the normals of the decal road being sharp, this is with or without a custom normal map. Selecting the switch to V1.5 button temporarily fixes the normals of the decal road but then when you update the material so that it fully switches the normals break again.
Okay well this is extremely odd, I've found a workaround for this but I'm going to have to say that decal road normals are bugged. By adding an opacity map to a V1 material you need to do this in the actual json file as that isn't possible in the editor you can actually get the smoothed normals shown in V1 > V1.5. I'm going to leave this marked as unsolved for the time being as this seems like an issue with the game.