IDK it might be you actually. I just tested PS2 Feels without the update in Mod Loader and got the same bug as before, also it says in its log that all LD_ textures and pcbtns.txd are installed. Try to look at yours log and see what it says.
Don't trust the log. I didn't go into details last time, but for me too the log says the TXDs are installed but they are not.
Let's take LD_ROUL.txd as example.
In Mod Loader:
Replaced in txd folder:
With Mod Loader, the TXD is not used, you can see the horrible compression from PC.
If you're lucky and Mod Loader uses the TXDs, it's still better to use the update, but instead of replacing the files, place them too in Mod Loader.