Ced
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Q:

why are godot sprites blurry

(for Godot 3) Next to the scene tab is "Import". Once in there, 
find the problematic image file that's blurry, 
deselect "Filter", and reimport. 
For blurry sprites used in earlier versions of Godot I suggest
this video: https://youtu.be/FgtekgMca2E?t=254
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