HDRP Decal material with "Affect normal" turned on looks completely white from most angles

Hello!

DESCRIPTION

I just started using decals. I game a GameObject with a "HDRP Decal Projector" component. Whenever my character is shot, I just instantiate this decal at the hit point and use Quaternion.LookRotation(hitPoint.normal) to rotate it into the correct position. Other than that, I am using pretty much default HDRP settings. I am not sure if it's relevant but I am using a Cube Map with a HDRI Sky.

PROBLEM

Unfortunately, when I have "Affect normal" turned on, my decal looks completely white from the majority of angles. It seems it is reflecting a lot of light. Here it is with it turned on:

https://i.stack.imgur.com/D5P4o.png

And here it is with it turned off, which is much closer to what I wanted but, unfortunately, it completely loses its 3D appearance, which is very important:

https://i.stack.imgur.com/x8bzj.png

WHAT I TRIED

I went on Photoshop and tried reducing the intensity of the Normal Map by blending the texture with the color (R127, G127, B255) but it didn't work. The 3D effect became less pronounced as expected but the whiteness/reflection remained the exact same. I fiddled with all of the settings that I thought could be related and nothing made any difference.

NORMAL MAP SETTINGS

https://i.stack.imgur.com/1k7Ya.png

MATERIAL SETTINGS

https://i.stack.imgur.com/rPCfy.png

DECAL PROJECTOR SETTINGS

https://i.stack.imgur.com/lFt7x.png

NORMAL MAP ITSELF

Here is the Normal Map image itself. It is tiny since it's only a decal:

https://i.stack.imgur.com/NFYnm.png

What am I doing wrong? Is this caused by a general HDRP setting of some kind?

Thanks a lot!