When applying a Texture to a mesh that shares a Model with a Humanoid, the Texture gets deformed. This is especially noticeable if the Texture object is semi-transparent (which is required for my use case).
Applying Humanoid to Model with Texture present:
Changing Transparency of Texture with Humanoid in Model.
In the examples you can see when I add the Humanoid object, the texture (+mesh) becomes deformed - causing the transparency to be applied inconsistently.
This only happens when there is a Humanoid present in the model with a Mesh + Texture. This does not happen with Decal objects - however Texture objects would be ideal to use, as you can resize the textures without uploading multiple images.