Texture Atlas blurry regardless of size

Hi. I've been working on a project in live2D and when I import the PSD everything seems fine but when I go to open the texture atlas, all the textures are incredibly small and pixelated. They also take up way more space than is necessary with these large blue squares which isn't how they look on the tutorials and examples I've seen, though this may be because of version differences. Part of the issue may be because my canvas size is much larger than the actual image or potentially because I used GIMP to create the images and then converted them to PSD. If anyone has any idea, please let me know, or any way I could fix it