Okay well.... I'm not sure what I did. But I just went back and tested it again and it looks fine now...

The only thing I did was close all my applications. I had Crowbar, VTFEdit, GMod and Blender all open when posting this and taking those screenshots. Hmmmm... who knows... but I'm glad things are working now. Thanks for helping out still!

Yeah it shows the whole texture in VTFEdit and the mipmaps all look good. Granted the outline basically disappears at a certain point but that's expected. The texture looks correct in the VTFEdit though.

I've successfully created a simple cube and textured it in blender.

Screenshot of cube model in both Blender and GMod: https://i.imgur.com/jvioi1r.png

As you can see in Blender, the texture is just supposed to put a small black outline around the edges. But in GMod the texture is incorrectly placed.

Here's my UV setup: https://i.imgur.com/IKo9ifX.png

It's nothing special. All the UV faces overlap to just use the whole texture on each side.

I also tried using the same material you see on general construction props: https://i.imgur.com/LIgX5JN.png

Something is definitely wrong with the UVs but I have no idea what. I made sure to apply the UV map to the material in Blender but that didn't seem to make a difference.

I checked for updates and it said I have 2.10.1 so I'm assuming I'm up to date.

Any help would be greatly appreciated! This is an awesome add-on by the way! I've wanted to make custom models for GMod for a long time now!