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I figured out a fix. Dropping it here in case anyone stumbles into the same issue: you can Enable the Region value in the Sprite2D and manually set the height to 1280px to fix this.

Thanks for the great looking stuff. 

I'm trying to make the character sprites work in Godot at the 32x32 resolution, but the vertical resolution is 1312px, so 20.5 rows high at the 64px character height.  I can't figure out how to make the AnimateSprite2D work without manually editing every sprite sheet to trim the empty bottom 32px of height. Anyone have advice here?