this is pixel jittering. If your sprite and/or camera has decimal coordinates, this might cause weird rendering issues like this one.
To fix it u could force integer positioning attaching this script to the node
func _process(delta):
position.x = round(position.x)
position.y = round(position.y)```
orrrr
check if its a viewport scaling issue, because when godot scales the viewport, it sometimes applies interpolation (even if filtering is set to nearest), which CAN cause pixel distortion. Though its apparently easy to fix:
project settings > display > window and check these:
stretch mode: viewport
stretch aspect: keep or keep width
and finally make sure if the sprite position is not in decimals and its exactly a one to one scale