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If I squint my eyes and look closely, it's a bit depth error.
You're trying to replace a file that is 8bit, if you intend for it to remain 8bit, then just use any editor to decrease the colour depth of the image in question, alternative, if it's a file that will work and not just locked to 8bit, you can double click the file to compress it to DXT, and then uncompress it again and it will revert to 32bit, and then you can replace it with any image you want.
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