I think somewhere in Thumbnail Generator::Generate Thumbnail FromTexture() is applying this washout.

Steps to Reproduce
  1. Create and place a LevelVariantSetActor
  2. Add new Variant set 
  3. Set thumbnail from file/Set thumbnail from viewport
  4. Generated thumbnail is washed out

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ComponentUE - Editor - Content Pipeline - Variants
Affects Versions5.05.15.2
Target Fix5.6
CreatedMay 11, 2023
UpdatedJun 28, 2024
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