I finally managed to apply the erosion filter to my game's terrain.
1st image is without erosion.
2nd image is applying erosion naively. The high-frequency details confuse the erosion filter and creates lots of little spikes.
3rd image is applying the erosion to low frequency parts of the terrain only, and adding the high frequency details afterwards. Plus some parameter tweaks to make peaks less sharp and add a third erosion octave.
#ProcGen GameDev