Encountering an issue here that I haven't seen anyone else experience.

I made a custom livery for a vehicle (Dutch Ambulance by SizzGames-Mods), and when I import it into the ytd file it becomes corrupted in the standard file, and not the +hi.ytd. I drag the file into OpenIV, and it looks like the file had already been corrupted when I imported it, though it isnt.

File Explorer

OpenIV

I have used the correct compression type, resolution, and mipmaps for the .dds yet it still becomes corrupted. But for some reason it doesn't corrupt for the +hi file, though the thumbnail in the OpenIV menu looks to be corrupted.

Edit: Renamed the normal .ytd to not be used by the .yft, because they contain the exact same contents. When I view the model in OpenIV, the livery appears normal, but looks severly corrupted when getting farther away (corrupted texture changing according to distance). Ingame, the livery is not used at all, and the vehicle looks to be a standard black paint.

Is there a fix for this?

Edit 2: Thanks to this ReNNie guy for giving me a hint at my brain error. It wasn't the compression being DXT1, but me being an idiot and somehow managing to not realise that 4096 and 4268 are different numbers. I had thought I were using the dimensions of the original texture for the vehicle, which I had thought were 4268x4268.