It's a bit strange, it's as if Cream's head was put on the body of a different character. That aside, I don't see why this image would be considered low quality, so its approved.
Oh come on, this was made before novel AI goes public, and long before better alternatives to novel AI are released. it's normal that the hands are not that good.
interesting part is that this picture is pretty because i set up stable diffusion wrong.
desaturation was partially caused by "auto" in VAE settings. After I set it to nai.vae, it became more saturated (still good tho: https://files.catbox.moe/850cnu.png ). You can try disabling VAE (set to "auto" or "none" in settings) for more desaturation.