Reported by Twitter user,

"Does #UE4 seriously not support importing greyscale textures anymore?"

Steps to Reproduce

1) Open a Project in UE4Editor
2) Select Import in Content Browser
3) Select either of the attached files

LogAssetTools:Warning: Failed to import '/Users/.../Desktop/GrayScale.tga'. Failed to create asset '/Game/GrayScale'

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Fix Commit3084661
Main Commit3133983
Release Commit3159180
CreatedNov 7, 2014
ResolvedAug 11, 2016
UpdatedApr 27, 2018