This is a certified blockhead moment.
Yes, A Charlie Brown Celebration actually looks like this on the Charlie Brown's All-Stars DVD, continuing the tradition of Warner only giving the remastered treatment to the headlining special on the standalone DVD's (save for the 60's, 70's, and Emmy Honored Collections), with the bonus special being either a reprint of Paramount's DVNR'd masters, or in the case of this one, old VHS-grade masters.
All that said this actually isn't too terrible looking, and it's the only way to own this special on DVD, so there's that.
11-27-23: You have lost comment privilege :)