I'm not sure if this is the engine or me, but given that I'm having this problem only with the latest version and only with effect_layer-generated particles, I think it's a bug.

Basically, if I create a particle with effect_layer, the particle's transparency system is completely blown. Alpha blending is gone, and the coloring seems to be entirely washed out. For instance, a particle that's supposed to be rendered on a scale between a light green and black (with BRIGHT, so black = invisible) actually renders between total white with a faint green outline, then pure green, then getting smaller, and finally black/invisible.

Meanwhile, if I turn off bright/translucent, I confirm that the particle's coloring and bitmap are totally correct (although the soft circle bitmap hard clips on the edges). But this doesn't look good for the overlay HUD it's meant for.

I have tried manually assigning the particle's material to no avail.