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Because it's small, it's difficult to say what was applied on frames 2 and 4..... either BLUR or any of the filters in PIXELATE or even whether the resolution was lowered in certain frames to account for the pixel effect.  I don't think any of the frame images in the animation timeline was nudged even a bit.  But I can only experiment on these a bit later as I have to go out a bit....

But in the last frame, the brightness values of the image within the border was raised a bit.  This layer/frame could have been the original image...... thus you re-engineer backwards - lower the brightness, and so on....