Just a heads up in case you run into this issue too.
I had to update the default Post Processing and turn the motion blur intensity down to 0 to prevent the character sprite from blurring when moving. I am using the latest version of 2023 (2023.2.15f) so maybe something changed between the updates.
I acutally noticed the same issues with the blur when moving? Can you give me a hint where to find those options you mentioned? 
Yeah, the settings are in the files we moved into the Settings folder. If you select UniversalRenderPipelineGlobalSettings, you will see a Motion Blur toggle with the Intensity setting underneath it:
Ah awesome got it! Thank you!
