Select the one that corresponds with the material you selected and hit apply. In there should also be the textures you drag and dropped. Click on the small bubble on its left and it should open up a window with a lot of, I'm assuming, default textures. png's I unpacked from blender) Select one of the Materials you want to texture and look in the 'Inspector' window. Then you are going to want to drag and drop all the textures that you need into this folder as well. instead of worrying about the 'Extract textures.' button, look at the one bellow it, 'Extract Materials.' Click this and extract them to a folder in your project. This is how to manually apply the textures to the materials. It seems obvious now that I've figured it out but it really wasn't for hours of googling lol.

I found a solution finally!!! After hours of searching! Hopefully this works for everyone using Blender who are still lost.