What is happening with sprite transparency in the standard shader in unity 5.6?

Questions & Answers
1

when using a transparent sprite (set to 32 rgba, with transparency enabled) with the unity standard shader set to “transparent”, the transparent area isnt fully transparent. The transparency works with the standard shader set to “cutout” and with unlit shaders set to “cutout” OR “transparency”… just not standard set to “transparent”. im freaking, what is going on? The truecolor setting i think used to fix this maybe idk now notruecolor setting whats the dealio?

[EDIT] i uploaded a quick video to youtube showing my sprite import/shader settings - YouTube

[EDIT] the sprite is a PNG

2

Set it to fade, not transparent. Transparent in the Standard shader is actually premul transparency (for glass, etc.), thus keeping reflections visible in transparent areas. Fade is traditional transparency.