Main Photo looks like an Alpha channel

Writing this because I've never seen this before and it is messing my finished product. Modding a game graphic for this process.

When I open an exported photo into PS it asks if I want to "Load Transparency as Alpha Channel" and I check the box as normal. I then get a main layer that looks like an Alpha. And the Alpha has the normal lettering (both attached). When I change my photo to what I want it to be, save (with the proper dds save protocols), and re-import that dds into my game the picture shows up as a dark shaded graphic. I can only think that it has something to do with how the main layer of the original photo looks like an Alpha channel save.

First has anyone seen this before and understands what is happening? Second, how would I make my layer look like an Alpha channel? Just trying to see if that would make a difference when I re-import the finished dds into my game. None of the other graphics that I change come out dark shaded like that so I'm trying to understand how that is happening. Any help or if you need further clarification or details, please let me know.

Thanks!!