Sprites using Unity 2017 sprite packer desaturates sprites at run time

So I am trying to use the new sprite atlas tool in Untiy and I notice at run time the sprites are getting desaturated. If I bypass the atlas and use the loose sprites the quality is good. I have filter mode set to bilinear and compression is set to normal quality. It seems that any adjustment to the settings makes no difference. Please advise.

Found the problem: it happens when working with linear color space, not with gamma, not a specialist but it seems the sprite packer is incompatible with linear space when using normal textures