Hey dop2000,
Thanks for your response, yes, the same happens when copying to a blank project and all the things you mention are correct, z-elevation is zero, angle is zero, and layer-scale hasn't changed as far as I am aware. Position is 0,0.
It's such strange issue. It looks ok if I don't full-screen, but when I full-screen, you can see either the blurry tiles when set to bilinear or trilinear, or perfect tiles, but pixelated HUD & Menu boxes if set to nearest. Full screen quality is high.