Comment by gametorch

So I tried to fix it.

I was too lazy to even type out a full prompt, just clicked the "touch-up" button which feeds in this prompt:

"please upscale and touch up, but keep the transparent background because this is a video game sprite"

And I got this result:

https://gametorch.app/commons/edits/24

That's with today's models. Six months from now they will be exponentially better and cheaper.