I feel like this game really needs a regular walk speed, the base speed is too fast.
I can’t tell if it was like this in the last DD but there’s something odd about your mouselook in that it doesn’t work properly at super low speeds. Funnily enough, I get a similar problem playing Shadow Warrior Redux albeit only in the vertical axis. Whatever it is, lower framerates exacerbate it so it’s particularly noticeable on the Streets level for me.
The baked weapon sprites look good, the shotgun especially. You should try getting rid of specular lighting on the environment because that really clashes with the sprites, seems like going diffuse only might tie them together a bit better.