PowerVR PCX2 doesn't have blending functions so of course it's going to look wrong. Lightmap blending is approximated with alphas, and all other blended stuff like fire etc. are suddenly alpha blended. The funny (possibly gaussian) alpha channel bilinear filtering makes that look even more blockly with more halos.
KHG through the PowerVR SGL driver was a faster option than software rendering at one point in time (definitely not the later second P3 point in time)...

long live PCem
FUCK "AI". It is a tool of fascism. We do not need it. We do not use it.