Texture Flipped on Model Surface - Why?

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It’s likely that your uv map is backwards, or mirrored in a sense.

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Perhaps you can tweak the mapping options in the texture settings:

For example if you invert the figure for the x-size to read -1.00 instead of 1.00, the picture will be flipped in the x-axis.

And it definitively makes no difference which picture format you are using.