If the user wants to alter texture input of the material which is expecting Virtual Texture, even if the virtual texture is supplied, Mutable generates its own non-virtual texture and assigns this in the MID asset.
Is there any way to set that the originally supplied texture should be set as an input in the MID asset or convince Mutable to generate proper texture class (VT) ?
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Zbynek
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Hey there,
Right now, you have the texture (and most likely the material) as mutable. This means that the texture is going to be mutated and converted to a mutable asset. Any asset that you want to be known to the generated asset, but not actually used as a mutable asset needs to be marked as passthrough. You can do this for textures and materials in the options for the mesh section at the top under the material assignment as Textures Parameter Mode.
Dustin
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Hi Dustin,
Thank you for the advice.
Unfortunately I see no option to switch the input to be pass-through as you are suggesting.
What might be blocking it, any hints?
Zbynek
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Yes, so in your image, it’s greyed out there in the rollout for the texture parameter. There is a small workflow thing where you need to disconnect the node, change it to passthrough, and then you should be able to reconnect it.
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Well, if I follow your steps. The parameter will change to Mutable as soon as I reconnect the texture back in. 
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Apologies for the confusion, I was not testing this in the correct version of the engine, this is work that has been completed for the next version of the engine in 5.8.
https://github.com/EpicGames/UnrealEngine/commit/14a2477217e182c919c67017c3937f83d989e629
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