there was this obscure (either as obscure as sherwood dungeon or even more obscure) 2d sandbox platformer game back then where the main selling point was that you could make levels with a wide variety of objects
what i know for certain:
the game was not pixelated
in the game you had backgrounds you could choose from when making your levels, i do remember this one background which was a real life picture of a dark hallway lit up by a bright white window at the end and there were 2 doors in the hallway, on the right door there was a funny little chat bubble
the guy in my picture (recreated poorly, i know lol)
seemed to be the main face of the game, in-game he looks more metallic, i know he looks like a cat in the picture but hes not, hes sort of a construct (he was either gray or dark-blue), and that black rectangle he's holding was actually his weapon which was a cannon that (i think) fired fireballs
not sure if there were other playable characters, but if there were, i played only this guy
i dont remember if the game had multiplayer capability, as i spent most of my time creating and playing my own levels
when i try to think of what the game could've been called, the words: "world" and "craft/crafter" come to mind but im not 100% sure about this at all