If you don't think its bad then show me something that you think is really bad.
C'mon!
We have several fine examples already in this thread. As yet nothing much more than what I have already shared or seen has jumped out at me.
As for that one it showcases a scene wherein you are somewhat alone (while you are usually with a team you don't ever really count as safe), showcases something of the main conceit of the game, hints at a mystery/tension with those blood trails. The lighting is not great and the CGI is... of its time but all pretty within reason. Object placement might do better (though all together serves to draw the eye to the middle of the image) but I will skip golden ratio and rule of thirds type talks, even if that camera framing is actually not bad there for that one. The distressed font is a bit overdone today but is legible and at the time was perhaps not so played out (granted the zombie thing that ultimately killed that one was only just starting to gather speed -- 2002 we saw 28 days later which used it extensively*, 2004 was the dawn of the dead remake). Having watched a bunch of
gameplay footage the voice acting is absolutely atrocious (well into "so bad it is good" territory if you like cheesy horror), the story scarcely any better and the mechanics of the game itself are borderline non existent, though I am drawn to wonder if the Dead Rising people gave it a spin at some point, and awkwardly crowbarred in at that. I am probably also supposed to ponder the prevalence of found footage films around the time that was released (mid 2004 release is a bit late for Blair Witch craze, even given pitch and development time, and before Paranormal activity, REC or Cloverfield but it was all getting started I guess).
All that said if we are contemplating boxart then while it is likely never going to make a best boxart list it is perfectly serviceable.
*indeed I even have a font on my machine that I use quite a lot called that
https://www.dafont.com/28-days-later.font
Still for bad game art then it ought to not showcase something of the game, even if it is just a feeling, or actively mislead the viewer in a bad way. That said a nicely designed bit of word art on a plain background non relevant pattern can sort of work or at least not rank as bad (lazy, certainly, bad, less so). There can be some overdone tropes (solider walking away from an explosion, possibly faded out with some orange highlights, being a good one here). Speaking of overdone then I have a handful of ones from the 360 that were probably overdesigned (a lot of the lesser send in a hardnut to clear the room games were this if my stint on the releases desk were anything to go by, though most things I noted there were more about region differences) but that could just as easily be a reflection of the game itself ("skulls on armour is cool, more skulls is more cool" also being the choice of many a character designer). Not the one I was trying to think of but Hunted the demon's forge boxart is probably a good example here, especially if you compare the NA to EU stuff.
8 bit era stuff, especially Japanese and not Nintendo or Sega consoles (though they are hardly immune), often have some spectacular oddities and are probably almost a subgenre of this. Here you often see very odd (especially given the nature of graphics of the day)... I want to say realistic hand drawn stuff that bears little resemblance to the work in question, though I might wonder if that is the benefit of hindsight and the games themselves become the art rather than something to project onto a la mental images of books that some cast them as. Said hand drawn stuff might also be quite bad as far as perspective is concerned but not really following any historical or notable style. The PS2 it seems had something of its own spin on this with bad CGI, worse is it was not in game footage, that we have already seen several examples of.
Sometimes you get bad object placement or character eyelines and hand placement, bonus points if it is sexual for a decidedly non sexual character/game.
The following video is more about films but notes games in passing and hits a few other points and I otherwise like its take on things
I could probably cover what I would normally seek in something here (though most of that is do the opposite of above, and if you are doing in game characters on the boxart then maybe have their pose convey something about them and the nature of the game rather than "3d modeller crucifixion pose is only worse because it is associated with glitches and no effort").
Edit actually I am greedy and going to have another video.
Judging anime by its cover