When trying to upload Android (Quest) version of avatar I encountered issue with Normalmaps:
Avatar in editor (Unity 2022.3.22f1; vrc avatar sdk 3.7.0) with Standard Lite mobile shaders looks without issues (screenshot in the attachments alongside with shader and texture settings).
But when log into standalone version of vrc (from Quest 2/3/Pro) it have shading artifacts. (that can be seen on attached screenshots. Version without normals there too for comparison).
Visuals of the artifacts depends on normalmap format. The ones I tested with was:
For Standard Lite:
RGBA Compressed ASTC 4x4 block
RGBA Compressed ETC2:
RGBA 16 bit (intensity 1 and 0.1)
For Bumped Diffuse:
RGBA Compressed ETC2.
RGBA 16 bit.
Problem occurred, presumably, few month ago (it also was present in SDK 3.6.0) and consists on every attempt to upload any avatar with Normalmaps.