Weird Effect on Sprite

Godot Version

4.2.1

Question

I am following a tutorial video on youtube and I have reached the point of importing a sprite and selecting animation frames (9:06 time stamp if interested).

When I select the frames, I notice this strange effect occurring on my sprite that does not happen in the video (I already changed Default Texture Filter to Nearest).

In editor:

While animation running:

Any way to fix this?

Thanks.

looks like a problem with your drivers.

or you have UI stretch mode set to scale.

This is a known issue with a specific NVIDIA driver which has been fixed.
Please update your NVIDIA drivers to the latest version.