There is a VHS post-processing effect that makes the game look a little pixelated which might be the reason why. I also have the texture quality turn down so that it runs better on most computers. The flashlight should keep things pretty visible but I'm not sure what else you can do.
I haven't really received any feedback about it being blurry. But I have seen people say it's a little too dark so I might do a hotfix pretty soon here to adjust the brightness a little can add an option to turn off the filter as well. It'll be a day or two though I'm right in the middle of a game jam so I'm kinda focused on that until it's over.