Right PNG format

I am using the “T - Basic Image” mode and am testing it with other images.
Unfortunately I get an error

loading image file: restaurant1.png
libpng warning: iCCP: known incorrect sRGB profile

I converted those images from other formats in Photoshop. But appearently Photoshop creates some wrong or outdated color profile. It seems due to that the images no longer can be used in this opaque mode, that can be dialed in with etc.knob4 in the original “T - Basic Image” mode.

With which tool did you create your images?

An example of my file is:

(origin of the picture is https://chuckmanchicagonostalgia.wordpress.com)

We use Photoshop all the time for image modes.

I created this .PNG from the .jpg from that site. The only thing I really changed was the resolution: from 300ppi to 72 ppi. I removed an oval just to check that transparency worked (it does):

Here are the output settings we used: