I baked the normals of a high poly mesh to a low poly mesh using cycles but the result seems somewhat odd.
This is how the low poly mesh looks like with baked normals:
The cage is a duplicate of the low poly mesh with a displacement modifier applied. All three objects are in the same location. Low poly does not share UVs. Shading is set to smooth.
How can I get the normals right?
Here is the .blend file:
Update: Since it was suggested that this issue occurs because of the difference between high and low poly I made a new subtle sculpt but the error still is present: