No. ULTRAKILL assets are made with carefully laid out UVs, at ingame resolution using my Pixel8r plugin. I don't lower the resolution after the fact. I have used 3D Blur as part of my workflow on a couple UK assets though.
I have a checker texture where each pixel is a different color, preview it on the model, and make sure my UV seams line up the pixels in a way that will prevent or minimize any seams when I go to paint.
