Transparent cutout shader for circular timer from Photoshop PNG is too messy/sloppy

I was running into this issue for two hours today before I figured out what the problem was, and I didn’t find any questions addressing it, so I am proactively asking:

When you make an Angle Gradient in Photoshop, the gradient appears perfect. But when you import it into Unity and use Transparent Cutout, the rate of fill-in is extremely sloppy, so instead of getting a smooth angular progression, you get what looks like ink pouring onto a napkin. Why does this happen?

• Select the texture in the Project window
• Next to “Format” you will see “Compressed” automatically selected. Change this to 16 bits or TrueColor.
• Voila, no more crappy fill-in of alpha channels when using cutout shaders.