Skin shader use DXT5 (no sRGB) instead of BC7 for the combined masks texture; stops blocky artifacts & it's more appropriate Resolves these blocky artifacts on the ao mask: https://files.facepunch.com/matt/1b2811b1/TA6eSCStlI.jpg Obviously this is a bug with bc7e and alpha channels (there are issues open), but it's super specific to the way we're combining these textures together for this shader. For standard color maps bc7e is supreme to all other encoders, and when we're combining channels together bc7 is rarely the right choice, so I think it's more than fine to avoid this. Remove nocompress hint from citizen_skin_ao.png and recompile skin materials