It was working fine and I don’t know since when this is happening. the sprites are severely distorted
This does not go away even after reimporting all assets . restarting editor etc. …
This issue occurred for me in in Unity version 2018.3.14f1 and resolved when I upgraded to Unity version 2018.4.8f1 LTS.
Deleting my library or reimporting the project did not resolve any issues, and there were no changes to my project files. Upgrading project to later Unity version was the only solution.
Related to issue My Tile Palette becomes a grey mess - Questions & Answers - Unity Discussions
