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If you have an interest in this kind of art, this GDC presentation by Mark Ferrari "8 Bit & 8 Bit-ish Graphics" gives lots of great detail about the art process, tools, and practices of the time (Ferrari worked on the EGA art for Monkey Island, among several others).

https://www.youtube.com/watch?v=aMcJ1Jvtef0

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When I was a kid in high school and considering a career in art, Mark Ferrari was kind enough to invite me to hang out in his home studio and chat about making art for games.

Apparently he had to fight with the engineers over switching to a dithered art style because at the time they were using run length encoding for compression. But, he re-painted a few scenes to be dithered and the improvement was so obvious that the engineers gave in and “made it work” (switched to LZW compression).

The art for Indy 3 in EGA definitely shows signs of dither being desired but not used, which I always found made it feel sparse and unfinished, even in VGA. Mind, I was coming to this from the standpoint of really getting into the Lucasarts adventures after LOOM. It's likely that on this game they were stretched for space regardless, since it spans a lot of scenes.

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