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Godot can't write DDS files or perform VRAM compression in exported projects, so this will require writing a custom exporter in GDExtension, likely by integrating libsquish.
That said, you can give Terrain3D PNG files and it'll work too (albeit with slower importing).
Terrain3D expects textures to be in DXT5 RGBA8 format. Could we get an option to export our generated material as a texture file in this format?
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