The cat does have texture coordinates but not layed out for what you want to do to work. In your case, you need the uv partition to be somewhat “homogeneous”, meaning two points that are close on the 3D mesh should be close in the uv map, which is not always easy/possible to do.
You can try to use a DCC tool like Blender to modify the uv mapping. @PatrickRyan will know better than me about how to do that.
Yes indeed. This method relies on mapping the dynamic texture over the mesh, so it relies on proper uv coordinates for the mesh.
I’m not sure I understand the problem with decals… You can create any amount of decals and they are not related to each other: each decal is a separate mesh.
So, decals are probably not a good idea as you want the texture to fully cover the mesh.
In the PG you did from Drawing on a Dynamic Texture over existing image it does work because the plane has proper uvs => I think it’s the right method, you simply need good uvs coordinates.