Updated builds.

build/three.js

@@ -24175,6 +24175,12 @@
 
 			}
 
+			if ( object.isInstancedMesh === true ) {
+
+				updateBuffers = true;
+
+			}
+
 			//
 
 			var index = geometry.index;
@@ -24945,7 +24951,7 @@
 
 				materialProperties.program = program;
 				materialProperties.uniforms = parameters.uniforms;
-				materialProperties.outputEncoding = _this.outputEncoding;
+				materialProperties.outputEncoding = parameters.outputEncoding;
 				material.program = program;
 
 			}
@@ -25043,6 +25049,7 @@
 
 			var fog = scene.fog;
 			var environment = material.isMeshStandardMaterial ? scene.environment : null;
+			var encoding = ( _currentRenderTarget === null ) ? _this.outputEncoding : _currentRenderTarget.texture.encoding;
 
 			var materialProperties = properties.get( material );
 			var lights = currentRenderState.state.lights;
@@ -25090,7 +25097,7 @@
 
 					initMaterial( material, scene, object );
 
-				} else if ( materialProperties.outputEncoding !== _this.outputEncoding ) {
+				} else if ( materialProperties.outputEncoding !== encoding ) {
 
 					initMaterial( material, scene, object );
 

build/three.module.js

@@ -24167,6 +24167,12 @@ function WebGLRenderer( parameters ) {
 
 		}
 
+		if ( object.isInstancedMesh === true ) {
+
+			updateBuffers = true;
+
+		}
+
 		//
 
 		var index = geometry.index;
@@ -24937,7 +24943,7 @@ function WebGLRenderer( parameters ) {
 
 			materialProperties.program = program;
 			materialProperties.uniforms = parameters.uniforms;
-			materialProperties.outputEncoding = _this.outputEncoding;
+			materialProperties.outputEncoding = parameters.outputEncoding;
 			material.program = program;
 
 		}
@@ -25035,6 +25041,7 @@ function WebGLRenderer( parameters ) {
 
 		var fog = scene.fog;
 		var environment = material.isMeshStandardMaterial ? scene.environment : null;
+		var encoding = ( _currentRenderTarget === null ) ? _this.outputEncoding : _currentRenderTarget.texture.encoding;
 
 		var materialProperties = properties.get( material );
 		var lights = currentRenderState.state.lights;
@@ -25082,7 +25089,7 @@ function WebGLRenderer( parameters ) {
 
 				initMaterial( material, scene, object );
 
-			} else if ( materialProperties.outputEncoding !== _this.outputEncoding ) {
+			} else if ( materialProperties.outputEncoding !== encoding ) {
 
 				initMaterial( material, scene, object );