So the bottom sprite that says Good Job was there from the start of layout. But the top one is a Created Object when the blue dot is destroyed. Why does it get blurry like that? How can I stop it from doing that?
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Could it be that you created many objects instead of one by mistake??
You can go to the debuger and check how many objects have been created, if it's not that then I have no idea.
Looking at it again, I think it was creating multiple copies.