The sprite will scale just fine as long as it only consists of a single frame. Once we add animation frames (either spritesheet, or individual frames), the sprite cannot be moved by the player, nor does it animate. Removing the scaling feature allows the animated sprite to be moved, but only in the standard 8 directions. Is there a way round this?
If this is a limitation of the Scaling feature, or is there another way to simulate depth of field?