"Update all sizes" is meant for the "import" function, because it only updates the mipmap you're currently in. The DXT texturing already updates all sizes automatically (if they're available). If you then do "update all sizes", there could be some glitching in the textures.

Looks like your settings are good - I assume they show the same on-lot as in CAS, too?

I'd still try downloading a default replacement skin and changing the textures there - just to see if it's how the game reads the files.

Right. It's the same in CAS and on the lot.
This is the default skin. I changed the face size to 1024.
In the screenshots, it is noticeable that compared to the milkshape, there is a blur in the game.

Could be an issue with faces - they're working with a lot of overlays, so it is possible it's auto-reducing to some or another 512x512 it's finding (eyes, some makeup, etc.)

Well, I take it there's nothing you can do about it(
I don't have the strength to change anything anymore..
I'll have to put up with it