The game looks pretty dated. Even at its launch it wasn't the most visually stunning game. Now the years passed and it aged pretty fast.
The texture quality is very bad.
What's even worse is how some textures look better than others like some people already pointed out.
I wouldn't bother too much about the graphics but this is a premium sub based game that's story heavy with loads of cut scenes where characters and environments looks absolutely terrible.
It's bad to the point of ridiculousness on some cut scenes.
The game will need a major graphic update sooner or later.
Yoshi already hinted at this on some interviews. I believe it will happen with 6.0 from what he hinted when the game will need to support PS5.
Not that they can't do it now if they wanted to but they either don't have the time or they simply want to wait the PS5 launch and support to do it.