octo pixels at 4k make the game look worse than if it was just single pixle resolution. needs fix

It does that on every resolution. That's the point. It's to make the graphics "worse" not better.

it's selecting an integer of the base resolution. octo pixels gives you 1/8th of your full vertical screen resolution as the rendered resolution. This is to get that pixellated blocky look. If you don't want it, turn resolution scaling off.