Masks texture compression considerably degrading textures

masks compression is just the regular compression that disables srgb. no benefit to using the masks compression generally.
try saving it as an alpha compression if its just a grayscale.

the compression for multi-channel packing basically packs/merges rgb together which results in quality loss. the only channel that does not have this is the alpha channel since thats basically a unique RGB channel altogether. it also doubles filesize when using alpha.
so its often better to not use alpha and combine the alpha channel texture with two others in a new rgb packed texture.

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