Colour textures should always render with sRGB and linear should be used carefully in specific circumstances say as part of the shader maths (e.g. mask textures or something).
User is reporting an issue with the preview of a Sprite and its rendering in game differing from the Texture Editor based on sRGB setting.
With sRGB = True:
With sRGB = False:
Reproduced in 4.7 Preview 3 Binary
Reproduced in Main Promotable-CL-2408355
1. Import the attached ColorTest.tga Texture
2. Create a new Sprite from the Texture
3. Open both the Texture and the Sprite Editors for side by side comparison
4. Set sRGB = False.
RESULTS: See Attached Screenshot. Two Editors show different images
EXPECTED: Two Images are the same no matter the sRGB setting
NOTE: I have also tried to alter the DefaultSpriteMaterial to use a Linear Color Texture Sampler node with no differing results.
Head over to the existing Questions & Answers thread and let us know what's up.