The cloudiness is a result of the way your texture is sampled. To fix this, use Nearest-setting. Note that you need to do this for each and every pixel-art texture.
As for the faded colour, that would be the tonemapper. To fix that, add a boundless post process actor to your scene, and override everything relevant such as autoexposure to manual, colour correction to none etc.
EDIT: In texture settings, make sure sRGB is enabled. In the material itself, make sure the texture is read as Colour instead of Linear Colour.
PS You didn’t ask, but if you’re going for pixel art and don’t require shading (looks like it in your screenshot), switch to Unlit material. It’s significantly cheaper to render, and gives you more artistic control and consistency in what I assume is your use case.