Thx for reply pennyloafers. I found this, Blurry texture (image) in shader - #3 by system, which worked for me.
There’s been a crapload of topics about this issue but with 4.2.2 even if you set the texture filter to nearest in the project settings it still doesn’t work. Maybe its a bug?
But setting it in the shader like that dude in the linked thread did fixed it for me.