This system uses unity's built in foliage for terrains. The texture that stores the grass damage is created relative to the terrain size but is adjustable. Chunk sizes are adjustable based on texture size and performance needs.
The grass appears to be cut but it is all done in the grass shader
The grass is a lit material (to keep the shadows) with normals all pointing in the same direction for uniform lighting to achieve that stylized look.
A fake UV map is made based on the foliage objects position (not world position but origin position) and offset to the position the terrain is (so it starts at 0)
the texture applied to the grass is written into using chunks for better performance
damage is mapped onto the grass, which will be used to control the alpha clipping from the top.