Yeaaah... There really isn't much you can do about it. It's still an Unreal Engine 5 (4?) title, even if the textures are stylized like a PS2 game. Maybe try this:
- Set the render quality to 100%
- Open the res.txt file by the path `%USERPROFILE%/AppData/Local/VotV/Saved/SaveGames`
- Add the 256x144 resolution (like literally... It is 20% of 1280x720)
- Use Lossless Scaling (available on Steam for a few dollars, or, well, somewhere else)
- Set the in-game resolution to 256x144 and enable the windowed mode
- Scale the game up to fullscreen with Lossless Scaling and any upscaler you find cute (I suggest trying FSR, Nvidia Image Scaling, and LS1)
But 20% of 720p is just simply not enough pixels to properly display anything further than the arm's length distance.