Frames imported from spritesheets are coloured weird

Godot Version

Godot 4.6 macOS

Question

I imported some sprites from a Mario and Luigi spritesheet to test billboarding and camera angles, but the colours ended up looking… almost JPEGged after i imported them. Any reason why?

How it’s supposed to look…

…versus how it looks in-engine.

This is due to VRAM compression, which is automatically applied to textures used in 3D.

Select the texture in the FileSystem dock, then in the Import dock, change the compression mode to Lossless.

Thank you so much!