In UE5 early release 2, megascans assets that are downloaded through the plugin include textures with the wrong compression settings

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 :frowning: