How to crossFade two textures with shaders for morphTarget object animations?

Not entirely sure, but it seems your material might be interfering with or overriding the morphTarget shader chunk. You could try using the Material.onBeforeCompile method to customize the shader.

Check out this article:

You could also use this plugin mentioned in this Discourse thread:

And if you feel brave, you might also explore the Three.js Shading Language (tsl):

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