Some sniffers have found out they use some variation of this http://hhoppe.com/proj/gim/ and https://pages.jh.edu/~dighamm/research/2004_01_sta.pdf
That's surely not what they do. I work on some tech similar to GIM for some reasons. If they would use it, they would have to mention longer precomputation times, but they say model import is fast.
Talked in more detail about it here: https://forum.beyond3d.com/posts/2126759/
(also found post showing discrete LOD clusters: https://forum.beyond3d.com/posts/2127466/)
Ofc. Its likely they store stuff in textures to utilize HW compression, but i do not think they mess with parametrization to get displacement mapping.
The clusters from debug view looks more like a result from simple triangle reduction. They seem to have no need for displacement at all.