#Smudging of text over head
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Yes, I solved it, but unfortunately I do not exactly remember how. D:
I checked how it is done currently. I rotate and move text programmatically instead of using any nodes in material. Likely I couldn't make it work in material, so I removed that completely.
In general, I use separate component ULeHoverTextAComp that can create one or more widget components that show text. Every tick, code updates all texts - their color, position and rotation depending on options given when creating text. Note: this component has tick group TG_PostUpdateWork, otherwise you will still see some artifacts.
I suspect you do not need anything that fancy, but you will need to update position of text widget relative to player position every tick in code.