Make sure these input nodes are forced to 16 bits in your graph. The pixelation you see is what happens when one of the bakes is interpreted as 8 bits.
Your edits are degrading the quality of the heightmap that you create the normal and therefore curvature from, probably taking it from 16 to 8 bit in the process, causing stepping?
Agreed...better. If this is only an 8 episode thing. I don't think we are going to get any of the actual MK tournament in this. Maybe something for the next series.