A square POT is required for Basis PVR compression mode to work. If that compression mode is not used, using non-square image is fine.
GitHub issues raised:
@Leonidas Remember the issue that @Saad_Haider had with a logo that looked pixelated because it was a large texture in a small render area? I reckon this is the same issue that they faced too.
We are probably seeing this issue more because the option to convert to POT assets is now defaulted to false.
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