Have you applied the transforms for the armature so the Location, rotaion and scale are the same as the other objects in the model?

Whew, I'm glad you found a fix to the problem, because I was going to say, this is the dimpled fireplace in GS:GO HLMV, and I don't see a problem here either...

https://i.imgur.com/MKjl7ti.png

One final question.... What version of Blender Source Tools are you using? 3.0.1 or 3.0.2? If 3.0.1 update to the newest.

I much prefer rending in a PBR Environment... LOL

https://i.imgur.com/0FH32V2.jpg

I don't know, I compiled using the CS:GO version of Studiomdl. This is the model in the CS:GO HLMV. I am still not seeing the problem... and yes I got the

WARNING: ConVarRef r_staticlight_streams doesn't point to an existing ConVar
WARNING: ConVarRef r_staticlight_streams_indirect_only doesn't point to an existing ConVar

warnings during the compile.

https://i.imgur.com/1UnVC2x.png

CS:GO is source, not Source2 I thought

No not this version. there is a version for DOTA that does

I think I know where those extra verts are coming from....

It's your Triangulate modifier. DON'T USE IT...

Put the model into Edit mode Face Select Mode. Select all the faces and then Click Faces, then Quads to Tris

This is the model in SFM.

https://i.imgur.com/uCEIiYa.png

I'm not seeing those artifacts

I just unwrapped and threw something together

https://i.imgur.com/EBb525h.png

I'm going to be out for a bit. Not sure how long.

There is no UV Map here

https://i.imgur.com/XjqtmoF.png