Mipmap causes pixel bleed on textures with alpha channel.

I have a Base Color texture with alpha channel that I use to mask areas of the model that can have its color modified in material instance.
But for some reason, it causes pixel color bleeding when the texture is mipped.
Here’s an example of mip3:

It’s very noticeable even at distance. Mip 1 and 2 also have some color bleeding.

If I disable alpha channel on the texture, it removes color bleeding all together. This is the same texture at mip3, but without alpha channel:

Does anyone know how tp fix this?

I tried increasing texture padding for the white border elements of the frame, and it fixed the bleeding… temporarily. It came back few minutes later. Which sounds like some sort of a bug, to be honest.

I’m opened to suggestions on how to tackle this issue.

If disabling a channel fixes the issue that makes me suspect it has to do with the texture settings. Try disabling compression temporarily while the alpha is active. That said, alphas and mips do not play nicely together in game engines across the board. So it could be a usual case of this.