I'm trying to edit the crowds in the team files and have spent hours trying to find out what is going wrong with no result. I'm hoping someone here can help me out.
This is the New Orleans base team file, team_011. This is what it looks like before I do anything.

Here are the steps I am taking:
I load team_011 in the outdated 3DM Mod Tool.
I extract the file as a BMP file and save to my desktop.
I do not edit the image at all, just open straight into GIMP.
I go to File>Export As>Save image as a DDS file>Select BC3 / DXT5 then press ok.
I import the DDS file back into the Mod Tool and press save.
This is the result I get:

I know its something to do with the Alpha Channel but can not figure out why it is doing this and how to fix it.
One last question, I can only open base team files in the outdated mod tool, I can not open modded team files. This is the error message I get. Anybody know why I get this message and how to open these modded team files?

I have spent hours trying to figure this out, any help would be greatly appreciated.