Pixelated textures on Crystal Exarch

I am not sure if this texture quality is a bug or not:
https://i.redd.it/qj0cwfabvig51.png

Date & Time: 11th August, 11pm
Frequency: Always
World name: Every World
NPC name: Crystal Exarch
Area and coordinates: 5.3 MSQ Cutscenes
Steps:
1. Just watch 5.3 MSQ cutscenes

■ PC Specs

CPU: Intel I7-7700K
RAM: 16 GB
GPU: Nvidia GeForce GTX1080Ti

Just the game showing its age. High res textures would be nice...

thought it was intentional like this

I don't know if its intentional, but it sure isn't pretty to look at. Sadly, there's nothing to do about it.