Palika20; In the video for this bale loader, you can clearly see that it can pick up straw bales... You are likely trying to load bales that are not sized for this loader (probably from a modded baler), and as such are getting the "bale is not supported" message. The loader is sized for the default in-game bale sizes, bales that are larger than default in-game bales would likely cause overlapping issues when the bales are loaded.
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Awesome mod. Thank you very much!