Thanks for the fast response. I expect I could figure out the shader graph and how to add alpha transparency manually. I was mostly asking if there was some option I was missing for USD import so that the USD file would display properly when read into Cinema 4D. It sounds like there is not, so this seems to be a regression - C4D used to read in this type of USD file and display it with cutouts. So, as you advise, I've reported this as a bug (well, a "suggestion" - there doesn't seem to be a way to report a bug?): https://support.maxon.net/hc/en-us/requests/657464

I hope it's a help. I love C4D's intuitive nature (I'm testing as part of my work at NVIDIA), sorry to see this part of the USD importer no longer work correctly.

Try loading my USD test file McUsd.usdz found in https://github.com/usd-wg/assets/tree/main/full_assets/McUsd into C4D (2024.2.0) by dragging and dropping it into the viewport. Set the camera by selecting its "box" in the upper right (see screenshot).

The sunflower object in the foreground should be a cutout object. Instead it has some semitransparent shading, as if it's using some other channel than the alpha channel for transparency. Examining the material, I don't see a way to make the shader use the alpha channel.

For comparison I've attached what I see in UsdView, which is correct.

C4D used to import (an earlier version) of this scene just fine, see https://github.com/erich666/McUsd?tab=readme-ov-file#cinema-4d. I have also tried exporting to OBJ and get the same sort of semitransparent problem.