Dear Guy,
I have looked at your files and checked the code paths. I can say that VASP is indeed plotting an excitonic wave function that results from the calculations you submitted. However, there is a caveat: while VASP can output a wave function from TDHF calculation, that does not mean that it is going to give you a physical result.
In summary: the DFT-based interactions that you are providing VASP for building the excitonic Hamiltonian will not result in good approximations for the excitonic states. The resulting wave functions and energies are therefore likely to be unphysical.
More detailed: In both cases you use DFT-based functionals (PBE and HSE) to compute both the screened and the unscreened interactions between the electrons and holes. This approach is not good for excitonic properties, since the electron-hole interaction is fundamentally wrong. VASP needs the electron-hole interaction to build the excitonic Hamiltonian, and if this is not good enough then the results won't be accurate. There are several papers pointing to the lack the proper long-range behaviour in q (~\(-1/q^{2}\)) in DFT functionals. As they do not have this long range tail they will fail at reproducing optical properties of excitons.
You could try to employ a model-dielectric function, has I mentioned in my previous post. But hBN is anysotropic, and this model was developed for isotropic systems, so it is not guaranteed that it will work. Even if you provide it with better parameters. You can look at this from the perspective that in hBN, being a monolayer, the dielectric function should be close to 1 almost everywhere in space, since most of it is empty (i.e. vacuum). So a model that does not take this into account will also fail at reproducing physical results for monolayers.
A better approach would be to perform a intermediate GW calculation and use the resulting WFULLxxxx.tmp files to evaluate the excitonic Hamiltonian. This approach is more costly, but it has been shown to give good results for materials such as hBN.
Hope this clears it up. Let me know if you need more details. Kind regards,
Pedro
N.B I should also point out that optical properties of 2D materials such has hBN require very dense k-point grids to reach convergence, close to 30x30 k-points.