Godot Version
4.6
For some reason, when I import this 7x7 circle sprite3d texture it warps into a different shape, what is the way of preventing this? I can provide more information if needed
I just recreated your 7x7 myself and I am getting the same outcome. My guess here is that for Sprite3Ds, it is automatically padding the texture to the nearest power of 2, in this case 8x8, for memory/optimisation/mipmap reasons.
7x7 that pads to 8x8 duplicating the edge pixels:
The 8x8 I created where I left the extra pixels blank: