I am trying to update a texture in the material instance and whenever i try to drag and drop it the texture slot glows red like showing an error like the image shown below.
Are you trying to drag a virtual texture map into a normal texture slot?
You would need to expose a Runtime Virtual Texture sample as a parameter to pass it into the instance. They are different than normal texture samples and do not work interchangeably.
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Hi. I think the texture in your material use linear color as sampler type, and the texture what you want to use are set to color(sRGB on). Try to open your texture and set the sRGB to off.
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