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I guess you have the rMBP?
If so, CandyBar does not seem to be Retina ready, thus the icon is only 512x512 pixel in size and looks pixelated. Why the Dock's icon and the Applications folder's icon differ I don't know, maybe it is due to the different size.
 
Sorry, I should have mentioned I do *NOT* have a retina Macbook.

I have an iMac.

I copied the icon from applications and pasted it back into the download folder, and it looks normal. But other icons (similar in look) are also pixelated in the applications folder ...
 
What Mac OS X version do you use? And what are those green marks on the bottom left of every icon? It looks like a DropBox item that way.

Wow, CandyBar is 133 MB in size.
 
I'm sorry, not sure what you mean by onyx service? Is there a setting under preferences or an app I should run?
 
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