Materials looking funky after migrating to 1.19?

Anyone know why I would be seeing super lowres, very glossy materials on everything in my game project? All looked perfectly alright in 1.15 and 1.16.
When I go into each material in MATERIAL EDITOR, it then turns into the funky mess like below:
(this is using textures/generic/wood/ from the WOODLAND asset pack*)*

There are also a lot of Error messages when the level opens that say:

[ 2] [Renderer] Texture does not have alpha channel textures/generic/wood/

There are also some console warnings about:

[Warning] Bad DDS header [File=G:\Lumberyard\dev\Monkey\textures\generic\wood\]<br><br><br>Can't open Mip request textures/generic/wood/

Any ideas how compiling on VS2017 for 1.19 could cause this? Did the texture format get changed? No support anymore for streaming textures? with .dds.1, .dds.2 etc?
The textures are all from Lumberyard’s own WOODLAND asset pack.
Is that now broken with 1.19? there was no warning whatsoever if so?

I saw that compiling for 1.19 now means if you have ROADS and RIVERS, you have to have SURFACE DATA and thus TEXTURE ATLAS installed. Does that maybe cause it?