This is caused by the whole-scene 2D scaling just upscaling the already rotated low resolution image.
To make it look correct we need to scale all the sprites/background before they are rotated, and then do all the rotations at a higher resolution.
How Mario Kart currently looks with whole-scene 2D scaling (NNEDI3):

How it looks in melonDS with 4x internal resolution and no scaling:

This is caused by the whole-scene 2D scaling just upscaling the already rotated low resolution image.
To make it look correct we need to scale all the sprites/background before they are rotated, and then do all the rotations at a higher resolution.
How Mario Kart currently looks with whole-scene 2D scaling (NNEDI3):

How it looks in melonDS with 4x internal resolution and no scaling:
