I just upgraded to 3ds max 2017 (SP2) and vray 3.40.02.
I created some instanced teapots. Rendered them. Changed the number of segments and suddenly they looked damaged.
They looked the same when rendering. Screenshot attached.
I tested the same thing with the classic scanline renderer and the new ART renderer and everything is OK. The problem does only occur when rendering with VRAY. Yes, after saving and reloading all is normal but it reappears every time I create a new object hit render and change the segments.