Window in Dojo isn't rendered, it's passable I guess but noticeable:

Camera inside Ryo's arm, noticeable:

Camera inside lights, not very noticeable:

Kid stuck in the back, very noticeable:

Camera inside Ryo's head, very noticeable:

Fisherman stuck in the back, very noticeable:

Camera inside Hisaka-san arm, noticeable:

Camera inside Ryo's arm, noticeable:

Camera inside Ryo's head, very noticeable:

Actually it's kind what I was expecting, keep in mind that this is what I noticed (could be more) and I only did it until reaching the beginning of disc 2, didn't feel like continuing.
As you can see there's a lot of problems just for this portion of the game alone.
As for Shenmue 2 I didn't try looking at it yet but its a mixed bag, one would expect to be the best game to support 16:9 because of the letterbox already implemented but the game just keeps jumping from 19:6 to 4:3 in cut scenes with QTEs. Probably would be very jarring, everything would need to be cropped I guess...
Probably disc 4 would be passable since there's almost no QTEs there. I'm curious what they will do with this game actually...