I updated everything to the latest Unity Editor. Also realized I had the wrong shaders on my hairs, those are fixed and the hairs look MUCH better!
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Preparing Sprites For Lighting
To light Sprites with 2D Lights, the Sprite Renderer component of the Sprite is assigned a material with a Shader that reacts to 2D Lights. With the 2D Lights preview package installed, dragging Sprites onto the Scene automatically assigns the ‘Sprite-Lit-Default’ material to them which enables them to interact and appear lit by 2D Lights.
Alternatively, you can create a custom Shader that reacts to Lights with the Shader Graph package. The Shader Graph package is available for download via the Package Manager.
Upgrading to a compatible Shader
If you are installing the 2D Lights package into a Project with pre-existing Prefabs, materials or Scenes, you will need to upgrade any materials used to a lighting compatible Shader. The following functions automatically upgrade a Scene or Project automatically in a one way process. Upgraded Scenes or Projects cannot be reverted to their previous state.
Upgrading a Scene
To upgrade the currently opened Scene, go to Edit> Render Pipeline > UniversalRP 2D Renderer > Upgrade Scene To 2D Renderer
Upgrading a Project
To upgrade all Prefabs and materials in your Project, go to Edit > Render Pipeline > UniversalRP 2D Renderer > Upgrade Project To 2D Renderer