The HD2 is the same data stream as the HD1. Losing a stream close in to a TX site is usually caused by severe multipath. In your case, I suspect any issues may be because you did the radio installation, not a factory one provided by the vehicle manufacturer.
Well, any car radio that gets clear, static free reception of WBAP along I-10 in Houston, and pulls in FM from over 100 miles away (used to be 150 before Cypress radio covered 103.5), and gets sporadic reception of 94.9 from Dallas has a good antenna installation and good grounding. My wife's factory installed Delco, even with a whip, is deaf on AM, and FM is nowhere near as good. My daughter's car is adequate on AM and FM for a shark fin, but still so-so. My GE SR 3 portable gets more stations. Her boyfriend's truck, 2015 model with all the sound upgrades, is still limited on AM and FM.
Local oscillator jamming can happen anywhere - it is annoying because I get jammed at a light, and the HD stays jammed until the offending car moves away. Sometimes it takes 100 feet or more. Invarriably, the same car ends up near me again at the next light. I've done the experiment, parking one car one, two, three houses down - the local oscillator jamming effect is real. I will probably post a Youtube of the experiment soon. Just for good measure, I tried a couple of different cars - RF leakage from the local oscillator is less on one that the other, both jamming cars had stock - non HD radios jamming my HD radio. I ran inside to check on a home HD tuner, it is jammed by a car parked in front. All that is needed is 10.4 to 11.0 MHz difference in frequency.
Some dropouts appear to be elevation related, I notice that the dropouts I am getting only 20 miles out from the full class C stations correspond to areas that recently flooded - they are low areas. I still don't think I am losing line of sight, but with houses and businesses everywhere, I may be dipping below the event horizon. I think most of the HD stations around here are running enhanced power, but it doesn't help much.