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Output switching in Separate XYZ node fails to update Displacement without going in and out of edit mode.
Confirmed, NormalPublicBUG

Description

System Information
Operating system: Windows-10-10.0.18362-SP0 64 Bits
Graphics card: GeForce GTX 1070/PCIe/SSE2 NVIDIA Corporation 4.5.0 NVIDIA 451.67

Blender Version
Broken: version: 2.83.5, branch: master, commit date: 2020-08-19 06:07, hash: rBc2b144df395f
Worked:

Short description of error
Output switching in Separate XYZ node fails to update Displacement without going in and out of edit mode.

Exact steps for others to reproduce the error
Open attached .blend file and change output of the Separate XYZ node from X to Y to Z, etc.. (It might update once or twice but will stop updating after).
You will notice the geometry is not changing slope direction. Press Tab to see what geometry should look like.

Event Timeline

Germano Cavalcante (mano-wii) changed the task status from Needs Triage to Confirmed.Tue, Aug 25, 3:49 PM
Germano Cavalcante (mano-wii) changed the subtype of this task from "Report" to "Bug".

The displacement not being updated is something that has existed since this feature was implemented.
I think that was one of the reasons why it was experimental.
Strange that I didn't find any other report about it.
So I will confirm it as a bug, but it is quite possible that it is a known limitation.