For this case it's not an issue in URP but in the custom shader "Dreamscape_Surface.shader" in the project. The keywords for Main Light Shadows need to be declared together so only one can be selected in each draw call.
Like so:
#pragma multi_compile _ _MAIN_LIGHT_SHADOWS _MAIN_LIGHT_SHADOWS_CASCADE
In that shader _MAIN_LIGHT_SHADOWS and _MAIN_LIGHT_SHADOWS_CASCADE are declared separately so it's possible for both keywords to be enabled at the same time. This made the REQUIRES_VERTEX_SHADOW_COORD_INTERPOLATOR define to be declared and is the reason for the issue happening in this case.