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This appears to be an effect of the DDS compression - it just doesn't work well with high contrast curves and that narrow outline seems to really mess it up. This is one of the worst cases I've seen. If you look at your .dds file you'll see it has those same artifacts. I was able to improve it slightly by using paint.net to convert from png to dds (it has better compression) and by blurring the outline, but it still looks awful. You could try using a gray outline instead of black, and maybe thickening it. Sorry I have no solution except reworking the image!
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