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Actual 3D artist here. The problem isn't really the texture itself but everything about it enhances how bad the texture looks. It's literally just a straight cylinder and there is no transition to the flat and green boring ground. Normally trees don't grow perfectly like that unless you have a higly cultivated forest grown for timber and not a natural wilderness. Trees have knobs and dead branches at the bottom and older looking bark the lower you go.
This doesn't have anything to do with stylization. You can make a tree look natural and wild and also cartoony with lower res blotchy textures.
And the entire flat plain around it just makes it stand out really badly. There's no detail to the ground, no small irregularities to the surface, no smaller trees, saplings and bushes around the big tree, no dead brush on the ground or such. Just everything looks rushed and cheap.
