Understanding peer bits or tilesheet design

Godot Version

Godot v4.7.1.stable - Windows 11 (build 26200) - Multi-window, 3 monitors - OpenGL 3 (Compatibility) - GeForce GTX 1650 - 11th Gen Intel(R) Core™ i5-11400H @ 2.70GHz (12 threads) - 7.76 GiB memory - WASAPI (48000 Hz, Stereo/mono)

Question

I cannot figure out if I am just setting peering bits wrong or if my tile sheet needs adjusted. I found a template to follow but they show it sort of 3 x 3 tiles but my 64 x 64 layout has a 4 x 4 layout for each tile if that makes sense.

func _ready() -> void:
    print("hello world")