(Noob question) Distorted pixel

I am using URP. My canvas is set to “screen-size camera” with reference resolution being 960x540. My sprites have ppu = 64.

When I place these sprites as UI elements on canvas, it looks allgood under 1920x1080 resolution (in the game view):
7992201--1027023--upload_2022-3-24_15-58-12.png
But not so good under 960x540 resolution (game view):
7992201--1027029--upload_2022-3-24_15-58-52.png
as you can see, the individual pixels are stretched to be rectangular instead of square.

Adding pixel perfect component (configured as below) to main camera does not seem to do anything.
7992201--1027032--upload_2022-3-24_16-0-7.png

In short: sprites look all fine in the scene view but in the game view with lower resolutions it will distort my pixels.

Does anyone know how to resolve this?

welcome to your long jouney of making 2d pixel art in a 3d engine(unity)

this has no easy fix, all i can say is that you have to research the topic “pixel perfect”, you will have to create the perfect conditions in your game, and if you miss the conditions even by 0.00001 you wont get it

in short, if you change the size of the screen your stuff will break, it can only be pixel perfect on a specific screen size