Texture artifacting?

So im trying to turn an image into a vtf and when I open it up in VTF edit and I preview it I get this

When it is meant to be like this

Ive tried every single Normal format but none of them seem to remedy this issue, I was wondering if anyone would have a solution.

(User was banned for this post ("This is not a Mapping question, and even if it was it would belong in the questions megathread" - Mezzokoko))

Does the texture have a alpha channel? Did you test it in game?

You need to edit your RGB and alpha channels separately. This means that, in your image editor, don’t use transparency and make a separate alpha channel later.

[editline]19th August 2017[/editline]

You can preview the alpha channel in VTF edit by using the “show mask” command