Running fabric 1.20.1
with Indium
Texture packs are enabled
Tried multiple different texture packs
Tried Restarting or just running Default texture packs
Tried testing grass and sandstone does not work

I am actually getting same behavior, aand almost same mods structure, so I'll send mine to investigate. Not familiar with fabric, so if anything is wrong please tell me

My mods:

Logs latest.log

There seems to be no issue on yours
Have you made sure to enable Continuity's resource packs?

Oh I didn't know I need textures
I tried built-in one and it worked, just in my case

Idk if @Sultansmooth is also facing the same issue, but if no responses around for a week this issue may be able to close

Same issue

Minecraft 1.20.1
Quilt Loader 0.21.2
qfapi-7.4.0_qsl-6.1.2_fapi-0.90.0_mc-1.20.1.jar
continuity-3.0.0-beta.4+1.20.1.jar
indium-1.0.27+mc1.20.1.jar
sodium-fabric-mc1.20.1-0.5.3.jar

No errors, just doing nothing. Like mod was not installed.
Tried various configurations, respacks, on/off mods - no difference.

Running fabric 1.20.1 with Indium Texture packs are enabled Tried multiple different texture packs Tried Restarting or just running Default texture packs Tried testing grass and sandstone does not work

Please send your log file
It can be found in .minecraft/logs, filename is "latest"

I am actually getting same behavior, aand almost same mods structure, so I'll send mine to investigate.
Not familiar with fabric, so if anything is wrong please tell me

My mods:

Logs
latest.log