I'm attaching a project that demonstrates the issue. I need to display a context menu with anti-aliased bitmaps. I wrote my own method to convert an icon into a bitmap (see the CreatePARGBBitmapFromIcon() method) but the resulting bitmap seems to lose all anti-aliasing when displayed in a menu. What is interesting is that the same bitmap is displayed without any issues in a CStatic 'stPic1' control (the one in the middle.) The visual artifact also seems to be different on different OS. Take a look at the screenshots attached.
Any idea what am I doing wrong here?