Exclude sprite from viewport pixel effect

You are on the right track, I think, with utilizing 2 viewports. You will also want to use the CanvasLayer node to help you draw them in the correct order. This is what the hierarchy would look like:

Root
├── CanvasLayer (Layer 0)
│   └── SubViewportContainer (Pixelated)  # Pixelated objects
│       └── Viewport
│           └── PixelatedObjects (all objects that need pixelation)
└── CanvasLayer (Layer 1)
    └── SubViewportContainer (Non-Pixelated)  # Non-pixelated objects
        └── Viewport
            └── AnimatedSprite3D (and other non-pixelated objects)

Hope this helps.

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