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The issue here is the material used. You can’t alpha away a m.tbumpenv material, which is what that engine uses. The Alpha channel on the main map controls the intensity of the reflectivity, right now it seems like your alpha channel is set to an RGB value of 255,255,255, or pure white, which causes the environmental map to be at full strength. You’ll have to adjust the alpha channel to a near black to eliminate the extreme reflectivity.
Env_metal has nothing to do with it. Env_metal images are used for m.gloss materials to generate a static 'reflection' effect, and cannot be changed at all. M.tbumpenv uses live reflection, and as Daylightrain described, the alpha channel on the main texture defines it. When you initially opened the texture for editing, you'll have noticed it was almost entirely transparent. It should be like that again when you save it.The asset didn't even include anything like an env_metal image or anything like that.
Probably most most-involved kitbash and I finished it (pretty much) over three days. Arcade & Attica #14 lives again!