As of recently, decals appear noticeably blurrier than they are supposed to (both in-game and in studio). This can be easily illustrated by comparing an image placed on a part via a decal with an image placed on a part via an ImageLabel (ImageLabels do not have this problem and render perfectly fine). Example:
(Here’s the image in use here:)
Here’s a reproduction file for convenience, but this currently seems to happen in any game with decals.
decal repro.rbxl (59.7 KB)