I am attempting to create a hillshade for some bathymetry data (.grd format) and the output is close, but still not usable. I have attached a picture of the issue as well as a link to download the dataset (G1-G2.grd). As you can see, the hillshade is partially overlapping the data in some spots and also colors other areas outside the dataset black.
I am using the Hillshade tool under the 3D Analyst Tools, which has worked for me in the past. Any idea what causes this phenomenon?