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The custom wallpaper setting in Start > Settings > Today always sets any wallpaper with a transparency filter.
Hamish recommends the built-in Pictures & Videos application, which is certainly the way to go. Alternatively, if you have any third-party image applications such as Resco Photo Viewer, you can use that too.
For Pictures & Videos, select Menu > Set as Today Background.
For Resco Photo Viewer, open the image of your choice, then select File > Save > Set as Wallpaper.
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