MSFS2024 SU2 Issue with SDK Texture - "Pink Checkerboard"

I sure could use some help..

First time doing scenery creation since MSFS2024 SU2 - I never had an issue like this prior to SU2.
I am trying to create some signs at a new airport and the texture is coming out “pink checkerboard”.

I have tried Blender 3.1, 3.3.5, 3.6.16, 3.6.23 LTS.
MSFS is happy with the data as no errors are reported.
I am at a loss as to what to do next.

  • All my image pixels are divisible by 8
  • Image is in my texture folder
  • Project folder is in the same drive as Blender
  • My image is - Aero_Club_of_BC.png = maybe my naming convention is wrong?

I am using Blender 3.6.16 but also tried other versions.
Never ever had this issue in MSFS2020, MSFS2024, MSFS2024 SU1 - only seeing this in SU2 - very frustrating.