Hello,
Thank you to everyone who has been trying to help.
Forgive the delayed response, I have been testing out the various solutions that were provided to me.
Here is what I seem to have discovered:
1. the geometry's scale: the object was very small, and once it was scaled up, the resulting displacement map was producing results that appear to be more familiar. There seems to be a Goldilocks zone; if the object is too large or too small the displacement map creation gets odd.
2. Poly count of the low resolution model was too low. However, even when increased artefacts are still present.
3. EXR, Using the exr setting in the transfer maps Output Maps, appears to cause problems. When EXR is used, Arnold does not seem to be able to create a .tx file or open it. As well, TIFF16 is not listed in the File Format in the Output Maps, however it is listed when you go into the File Save window. Then, the EXR file type is not listed, and regular Tiff is not listed.
I am including a document that I hope will show what I have been experiencing.
Also, If someone could address the issue with the artefacts - wave pattern shown in the images provided.
Based on what I have been reading, it appears that people often manually open the file and blur out the artefacts.
Regards