thank you! this did work. I created a separate materials folder and moved everything there. One more things I observed is I had to apply the material to at least a primitive shape. for proper texturing and lighting. I do not know why. So every material I saved inside the .usda file I applied it to a cube. Which solved my problem. Maybe I am doing it wrong. Anyways Thanks for your response!

Yes, That solved the problem. Thanks!

Thanks, I didn't know about @Observable.

That will definitely be useful!