Ok so I thankfully found a workaround. It actually was pretty easy and I was surprised I didn’t think of doing it sooner. Its basically using the decal/picture as an opacity mask. Like you would do with foliage. The only issue I am having with it is that the other side of the box the material is attached to is black or the material is messed up on that face, but I dont need to worry about it since I have thought of a fix for that as well.
Here’s my new material to show what I mean:
I made the picture i had of a paint splatter into an alpha so I could change the color in unreal itself. Also not sure if connecting it to Normal does anything but what the heck. This is just a workaround and I would still like to know why the original process doesn’t work, but I would guess its most likely something not implemented in Unreal yet.