Yeah something doesn't seem quite right about the low res mode on PC. Here's the picture I saw of it on Xbox Series and it looks how it should.
Whereas the PC version has some blur and texture filtering.
So it's not just me. I thought something looked off too. The console screenshot is what Quakespasm looks like when you set it to quarter scale in the config file.I'm guessing that PC version doesn't use nearest neighbor for upscaling for some reason, while console versions do.
Edit: And past Night Dive games have had low-res modes that look better on PC. Turok 2 and Forsaken remasters look more like the console screenshot here when you set their resolution scale to like 25% on PC.