What is DDS?
DDS is DirectDraw Surface, the texture format games ship. Its point is that the GPU reads the compressed blocks directly, so BC1/BC3 textures never need unpacking at runtime. FileSorcery reads it and converts out; writing good block compression is a job for a dedicated compressor.
What is PPM?
PPM is a Netpbm image: a tiny text header giving the dimensions, then raw pixel values with no compression whatsoever. Almost nothing displays it, which is rather the point - it is what image-processing code and academic tools emit when they want to be trivially readable.