It looks like some sprites are going to have to be re-edited.
The player character in particular is going to need a massive overhaul. Some NPCs (enemies) are working fine (such as Fairies, Goblins, etc.), while it seems anything with wings is completely broken (Demons, Harpies, etc.).
All paintings, furniture, etc. are fine. Town NPCs work, but I'm sure a lot of things like emotes are missing.