UMG Flipbook texture gets pixelated as time progresses

I’ve been having this weird glitch where as the Flipbook animates, the sprite sheet’s resolution gets lower and lower, until its just blobs. This however only happens when I set the material to UI mode. I’ve read some Reddit posts where it was suggested to change the texture group of the sprite sheet to UI, and a few other options, assuming that this pixelation arises from the LOD setting somehow. I’m not modifying any LODs, tried changing the compression types, but nothing. It works fine in the default material mode though. I need to use it in my UMG as an animated icon. I have some sample images, hopefully they’ll make things a bit clearer.
Please suggest what might be missing or I’m doing wrong.