Close! The thighs should bend inwards, not just cinch like that! You also need to tweak the bent arm more, it looks like lines drawn over her torso because it's too pulled in.
I recommend lowering the grab point from her shoulder to her elbow or slightly above it.

Post the results anyways so we can give pointers, you're not expected to succeed the first time!

Excellent change, looks much smoother now without compromising the tiled rough aesthetic of the games from that era.

Looking musch better to my eyes! A better transition between thr the two forest densities might help though, kinda shoots abruptly into the backing treewall before the mountains

My biggest obstacle was trying to enter into art as a whole through pixels. A good pixel artist has to start from a solid foundation of artistic knowledge.

I didn't do that and it took me way longer than it should've to grasp basics like rendering and anatomy.

Not sure why I posted this here, I think I intended that for another thread. Whoops.
On-topic, I'd say try to practice reducing details to pixel clusters. For example, let's take your cloaked figure's cloak. The way you've rendered the folds is too noisy, and gives it a very unclear muddied look. I've taken a crack at applying it here to the cloak and flag thing. I also changed some face stuff but ignore that, it's not really helpful.