I’m having a problem where my lighting is being “blocky” and not looking correct.
This user was having the same problem and his video perfectly illustrates my same problem:
He explains that he fixed it by faking the ortho camera with a perspective, but I’m doing a Paper2D project and this does not seem very ideal, so I’d rather not do that.
Is vertex fog enabled in the project settings? I read your other post and how when switching to the Forward Renderer, it happened.
I just tried disabling vertex fog, as it was enabled previously and that seems to have to effect 
It did not remove the pixelation
no effect, or it has the intended effect of removing the pixelation?
Is the fog effect intended to be in front of or behind the level’s main area? Is it a background effect, or an overlay that obscures some of the action / character(s)?
Well, in my exact scenario I don’t have any fog at all. It was happening on all sprites. My bad, I should’ve mentioned that.
Anyways, I managed to find through just messing around with it that the problem was somehow related to the distance of the camera to the character/scene AKA the camera boom arm length. I don’t understand what causes this lighting error, but setting the length to 0 so the camera is directly “on top of” the player and scene seems to have fixed the issue.
Lower arm lengths (still greater than zero) appear to work for some lights, but certain lights, I believe ones with low attenuation radii in particular, still did not want to function properly.
Setting the arm length to 0 also solved my issue of spotlights not working at all. I’m thinking this was the reason why the lights were acting so goofy before as well in my other post.
Regardless, it’s fixed now so hooray! Ty for your continued help, I appreciate it. 
It’s probably an anti-aliasing issue. There’s a feature called Anisotropic Filtering that can smooth things over in certain cases. There’s a pin for it in the material editor now. There’s a number of potential causes of that sort of blocky, pixelated noise though, so it requires some trial/error to discover the actual issue. You shouldn’t have to change the camera view distance to 0 to get it to display properly. Didn’t that drastically alter the game’s perspective then?
Yeah, I think you’re right. I looked for Anisotropic Filtering in the material editor, and couldn’t find it. It also turns out that turning Forward Shading on returns the sprites to the pixelated, blurry, sparkly look that you helped me with before. Turning forward shading back off, however, makes the lighting act unpredicably, though. 
It did not drastically alter the game’s perspective because the game uses a 2d, orthographic camera and it doesn’t really matter how close or far away an orthographic camera is as long as everything meant to be on screen is in front of the “lens”.
What do you mean exactly by saying, that “camera is on top of the player”? What are it’s coordinates relative to the player?
I’ve run into similar problem (Paper 2D game, orthographic camera, forward shading) and have lighting problems as well, with lights of certain attenuation radius. What camera settings helped you to fix the issue in the end?
Thank you, JackpotRobot, for pointing in the right direction for me. After some experimenting with camera distance I found the parameter that is working for me! Thanks, you really saved our day.