Looks like while you're using 16x16 sprites, it's effectively being down-scaled, and the reason it might be a little wonky on top of that is if it's position isn't an exact int (like if it's at 89.367 or 89.071 instead of just 89.0 or something) you can get some odd visual errors when you're working with pixel-perfect stuff.
I haven't used Unity in a few years so I'm not sure what settings are available to help fix those quibbles, but I'm pretty sure that's largely why you're getting this result :thumbsup:
Good luck with a fix, I hope it works out for you!