Image layer + final composited layer in shaded view:

Note: if I set the color to _black_ when I create the image, things work out okay- so now I’m thinking that it’s the base color of the texture being white that is causing the issue. i.e. you are right, Straight is the correct mode after all, but if you follow the steps exactly as in the video and the base color is white you will get ghosted strokes.