When DEMUL attempts to draw a "paletted && compressed" texture, it renders incorrectly as shown in the first picture.
According to official Sega Documentation the Dreamcast shouldn't be able to support textures that are compressed and paletted at the same time, however this appears to be a mistake in the documentation since "paletted && compressed" textures are rendered correctly on hardware as seen in the second picture.
I have provided an example cdi with the texture and palette files in question. If need be I can provide more information on this.
If you need a reference for "paletted && compressed" textures, tvspelsfreak has made a program that takes a PNG and makes a texture file in the Dreamcast's native format and I have made a program that takes this texture file and converts it back to a PNG.
When DEMUL attempts to draw a "paletted && compressed" texture, it renders incorrectly as shown in the first picture.
According to official Sega Documentation the Dreamcast shouldn't be able to support textures that are compressed and paletted at the same time, however this appears to be a mistake in the documentation since "paletted && compressed" textures are rendered correctly on hardware as seen in the second picture.
I have provided an example cdi with the texture and palette files in question. If need be I can provide more information on this.
If you need a reference for "paletted && compressed" textures, tvspelsfreak has made a program that takes a PNG and makes a texture file in the Dreamcast's native format and I have made a program that takes this texture file and converts it back to a PNG.
Compression.cdi
logo.dtex
logo.dtex.pal