Blend file: https://www.dropbox.com/s/ay1pb6eu9s0fw20/Anvil.zip?dl=0
I sculpted some details on the model using a multires modifier and baked it with "bake from multires" enabled and the bake type set to displacement. I then fed the image into a displacement node on the original, low poly model (with a 6x subsurface modifier). The result is... odd? It looks like the displacement is wrapping around the edge instead of actually deforming it.
Sculpt:
Base mesh with displacement map:
Relevant nodes (There's no bump map or normal map on the shader itself):
Messing with the mid level doesn't help. I also tried baking the normals and running it through a normal map node into the shader to approximately the same end result. I also tried baking to an 8k file instead of a 4k file to see if there wasn't enough detail, also to no effect. I know I could apply the multires and bake the normals to the original and get a normal map that way, but could someone explain why this method isn't working?