This is not a regression. Tested in //UE5/Release-5.1 CL23901901

Texture Filter Nearest isn't respected in Packaged Shipping Builds. When playing in editor, stand alone, or packaging in any other format the pixelation persists like expected. Only when packaged as Shipping is it not.

Steps to Reproduce
  1. Create a new Blank Project without Starter Content
  2. Create and save a new Basic level
  3. In the Project Settings navigate to Maps & Modes then set Game Default Map to the Basic level
  4. Import a low resolution .png Texture(see attached attack1_1.png)
  5. Right click the Texture then select Sprite Actions > Apply Paper2D settings
  6. Drag the Texture onto the Floor static mesh
  7. Select the Platforms drop down then Windows > Shipping
  8. Select the Platforms drop down then Windows > Package Project and select the project's folder
  9. Navigate to the packaged project's exe then launch it
  10. Press E to move up enough to see the Material on the Floor static mesh

Expected Results:
The texture should retain its pixelation.

Actual Results:
The texture doesn't retain pixelation.

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ComponentUE - Gameplay - Paper2D
Affects Versions5.2.1
CreatedJun 28, 2023
UpdatedJun 30, 2023