Your computations of displacedNeighbour1/2 is wrong in the NME, you should apply the displace transformation to neighbour1/2, not do neighbour1/2 + displacedPosition.
This seems to do it:
Note that I had to use an elbow node to connect the output of the (final) normal vector merger block to the transform block (to compute the world normal), directly connecting both would not work for some reasons…