Try going with 150-200 mm camera and then balance Fog Start/End with Sky scaling for the best visual.

And yes, Sky360 dome is a lot better choice due to its transform flexibility.
Just do not forget to crank the Self-Illumination all the way up for the material.

EDIT: The below is a user error, though trying to follow the Manual using the same "square plane" from the iclone props results in the behave below.
https://manual.reallusion.com/iClone-8/Content/ENU/8.0/46-Tessellation-Displacement/Using_Grayscale_Images_for_Displacement.htm?Highlight=displacement
The issue occured because the Iclone 8 plane has only 2 polgons against 2048 in Iclone 7 (thanks to 4u2ges)


( I leave this here , someone else may meet the same circumstances , the tracker issue has been removed)

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I asume this has not been fixed, so i put it here.
In IC8,32 / CC4,32 displacemant maps and Tessellation are not working as in IC7,9x.
I add a video to demonstrate the issue (comments welcome, but i think its not a user error
because it works flawlesly in IC7.


Tessellation :


Also put a message in the Tracker:
(removed)

In iClone 7 your plane has 2048 polygons (probably a Quad mesh plane)
In iClone 8 you are using a basic plane with 2 polygons. There is not enough mesh to tessellate.. thus the result.

Oh no, thanks 4u2ges ! I havent noticed IC7/8 using different prop planes.
(even the display clearly indicated that, user error, i have updated my post)