Thanks for the images and letting everybody know my first name, Larry.
With 1.5m your rough grid width actually should be tight enough. Your terrain measures 1700m for a density of 2049, meaning that you get one height information every 82 cms. This ought to work as well...
I don't think that smoothing more or less is an issue here, this looks more like some sort of strange mesh alchemy.
If you get these exclusively around your bunkers, perhaps these are at fault? I'm struggling for something helpful here, to be honest... you seem do be doing everything right at first glance.
1. Try and set your rough grid to 1m, recalculate and see if things improve.
2. Try to reduce the Meters per point value of of your bunker layer - it's usually quite low, leading to a sh*tload of control points around them. You can go up to 1 if it is lower than that (I usually set it to 2). Recalculate, see if there's any change.
3. Grasping for straws: Some of your tears don't look to me like tears, but instead like flat bits of texture seen from a very sideways angle, which usually makes the texture details look blurry and separate from the rest. Perhaps quickly painting the terrain underneath with a different brush might make it easier to make out a little better where the tear exactly is.
4. If there were a tear, it probably would show up if you switch on the "shaded wireframe" view - by a disruption in the grid pattern.
And that's all I've got, unfortunately. Hope either this helps or somebody else can contribute an idea.