Items in inventories appear compressed and clipped at low GUI scales

When the player views items in any inventory, container, the hotbar, or whatever else, items can appear compressed or cut off in certain areas due to the lower resolution of the GUI, set with the GUI scale.

Steps to Reproduce

1. Set GUI scale to the lowest possible setting (if no issue is visible, set one level higher)
2. Place an item with a clear pattern into your inventory (a target block is recommended for it's square, even shapes)
   → Item appears jagged and incorrect
3. Set GUI scale to a larger setting, either maximum, or one under.
   → Items appear correctly

Videos / Images

Notes

This behavior is relatively expected on the lowest possible GUI scale of 1, given the very low resolution space to work with, but is more prominent and noticeable on a scale of 2, given the larger size and resolution space. The end result on a scale of 2 is a near-perfect display of the item.