Back in the day, I used a program that loaded GIFs in 256 colours and converted them to HAM. The resulting images had lots of edge artefacts, and that is what I would expect out of that too.
Alternatively, on a AGA system you could use HAM8 mode and judicious use of colour palette to get 18-bit truecolour? Every pixel is 4 HAM8 pixels, displayed in SuperHiRes mode to look like 1 lowres pixel: First is the base colour, from one of 64 palette colours, which are 4 intensities of R, G and B in the MSB (e.g. 00xxxx 40xxxx 80xxxx C0xxxx times xx00xx xx40xx xx80xx xxC0xx times xxxx00 xxxx40 xxxx80 xxxxC0; 4*4*4 combinations = 64 colours). Next, three modifier pixels, modifying R then G then B to set the lower 6 bits of each. See https://youtu.be/pjiBhrqKxk4?t=41 (or http://aminet.net/package/gfx/show/h8jpg and http://aminet.net/package/gfx/show/h8ilbm if you want code)