But, It is. All the sprites are also small, like the box is 5x5. I think the mule is 8x16. Godot has a setting for each image where you can turn off filtering of the images, otherwise it would've looked really blurry. Do not besmirch my low rez mule! ;)
Not sure if that is breaking a rule? If so, I guess it might be too late to change it now.