I used the exact same prompt but with the resolution set higher manually and I attached your image, the exact command was

!dream a (beautiful mermaid)++ wearing a pirate hat and smiling to a (pirate ship)++ caught in a storm, beautiful, perfect face, cute, red hair, blue eyes, fingers together, lightning [deformed, malformed, deformed face, bad teeth, bad hands, bad fingers, bad eyes, long body, blurry, duplicate, cloned, duplicate body parts, disfigured, extra limbs, fused fingers, extra fingers, twisted, distorted, malformed hands, mutated hands and fingers, conjoined, missing limbs, bad anatomy, bad proportions, logo, watermark, text, copyright, signature, lowres, mutated, mutilated, artifacts, gross, ugly, crown, wand, extra thumbs] --width 1664 --height 1080 --strength 0.6 --steps 50

Took about 12 credits and 2 minutes for the higher resolution and extra steps but its an easy way to polish renders 90% of the time without the "smoothing" and loss of detail from regular upscaling