There are issues when using Material Extension shader with texture input. In order to see something the texture needs to be disconnected/reconnected. See patch :
VertexDisplacement.zip (24.8 KB)
This is a bug that the node generates two pins for the texture, the one that works is the one with the longer name:
Also, since a while there is a MaterialExtension base shader that contains all you need for material extensions, so the shader inheritance looks nicer, in this case:
shader VertexDisplacement_ShaderFX : MaterialExtension, TransformationInstancing
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