That's correct! Images still appear using the Hand Lens of Truth, but they will be blurry until about 2cm away.
As we used an outdated description in responding to you the first time, the spell "true seeing" has been made appropriate for this game and, as the Hand Lens of Truth suggests, here's an updated description.
The user of the Hand Lens of Truth, out to 120feet, can see in normal and magical Darkness, see Invisible creatures and Objects, and perceive the original form of a Shapechanger or a creature that is transformed by magic. However, all objects will be too blurry to identify to the viewer until they are about 2cm away.
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As we used an outdated description in responding to you the first time, the spell "true seeing" has been made appropriate for this game and, as the Hand Lens of Truth suggests, here's an updated description.
The user of the Hand Lens of Truth, out to 120feet, can see in normal and magical Darkness, see Invisible creatures and Objects, and perceive the original form of a Shapechanger or a creature that is transformed by magic. However, all objects will be too blurry to identify to the viewer until they are about 2cm away.