Thanks for the post, and thanks for the file. Yes this seems normal. The “red” version is the inverse of the texture on the inside face of the cube. The top version is the “positive” face and the red version is the inverted normal of the bottom face of the cube. To solve this, simply apply this mdl to a simple plane and make that the texture. Then bring the plane down on to the top of another plane or cube and you will have a “sticker” effect. You may want to then select the sticker plane and turn off shadows for it, so it does not cast shadows on the cube.
But just for clarification this is not really a “projected” material. It is just a normal mdl using a PNG texture with alpha as a transparency map.
