This is happening to me on a freshly installed project with a verified engine version. Downloading megascans surfaces and 3d assets and exporting them to the engine via the built in bridge results in broken textures. Specifically, the DpR textures that contains the displacement and roughness maps for 3d assets, and the ORDp textures that contain them for surfaces. When exported into the engine, they are set to Alpha compression settings, which eliminates every channel except for the red channel. You can’t even view the other channels in the texture editor.
This causes all channels except the red channel to output black in any material they’re being used in.
This is easily resolved by switching the texture to the Masks compression settings but that obviously is a tedious and undesirable step.
I have the exact same problem going on. Another issue is if you have virtual textures enabled, and download nanite quality meshes with 8k textures, it doesn’t automatically import the textures as virtual textures 
Hi @jkinz3 @rdtg,
I believe This problem is fixed in the latest
Quixel Bridge 21.0.4 Update to Unreal 5.0 EA2 Epic Launcher Binary version
You’re right! Unfortunately the latest binaries of the bridge plugin cause any packaging of projects to fail, which is annoying because i’m working on testing multiplayer functionality.
@jkinz3
That error means you probably still have the original Bridge plugin installed in your project 2021.0.3 still installed in your project.
You have to untick enable in the project plugin and restart the editor. Go back in find the Bridge plugin. Enable plugin again check the right number in the top right is 2021.0.4.
Restart the editor the NEW plugin is now loaded into your project and it works.
Well, that works for me anyway. The plugin code is enabled on a per-project basis
Even if You just untick enable and restart the editor, the project should package, if not its something else stopping packaging and you need to look in the packaging output log