Well, I do not think the issue is with the bake per se.
I posted my xNormal bake settings because I wasn't baking with default
+X.+Y.+Z.
I baked the whole normal map using
+X, -Y, +Z; because as far as I understand this is 3ds max's coordinate system.
This is also the reason why I flipped the
Y channel for marmoset since it uses
+X, +Y, +Z.
But just in case, here is the render with
Y flipped:
http://imgur.com/W3YfeGXIt still looks as though the normals are denting inwards.
I have also tried every possible other combination of flips inside the material, but the issue persists!
I can't get the normal map to behave the same way it does in Marmoset and Painter.
*Edit: http://imgur.com/q9q5s1T