Oh maybe because you're using the old Displace modifier? Which renderer are you targeting in Max? If you're using V-Ray, it's better to use the VRayDisplacementMod modifier.
Turbosmooth set to 7 is insane overkill, but ok. I imported the OBJ and reset Smoothing Groups to a single group. I added a Slice modifier to cut away the rest of the model. TurboSmooth at 7. Displace, and loaded your EXR in the OSL Uber Bitmap node. Maybe your import settings need adjustment?
I'm not seeing problems with your ZIP. This is rendered with V-Ray viewport IPR. I did have to add a Smooth modifier and set it to Smoothing Group 1, just to get nice smooth normals. TurboSmooth is set to 3 iterations. This is in 3ds Max 2024.2.1, with V-Ray 6.20.02. WIndows 11 Home, NVIDIA GeForce RTX 3080 Ti, 64GB RAM.…