2d – How to handle player slowness while moving up and down in a Top Down game with angled ortho camera and angled sprite due to stretching of ground?

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So i’m making a 2D top down game setup in 3D using tilted Sprites and angled orthographic camera.

My camera setup is as shown.

In my game I have the floor flat on the X/Z plane with walls/characters rotated +45 degrees about the X axis. The orthographic camera is pointing down also at 45 degrees about the x axis, parallel with my walls/characters.

As a result, I dont see any distortion for players/characters since they face the camera directly on, while the ground however sees a distortion of sqrt(2) shorter. This makes sense considering how an orthographic camera works. To fix this, I’ve made my Tilemap set up with X:1 Y:1 Z:Sqrt(2) so that each tile is stretched on the Z axis by Sqrt(2) to compensate for this distortion.

All looks well with only one problem now… foreshortening with regards to movement: Forward and backwards movements of objects/characters along the z axis are perceived to be slower than movements left/right on the x axis. This makes sense because while each tile is perceived to be a square in the camera view thanks to scaling Z on the tilemap by sqrt(2), the real world tile is, well, sqrt(2) times taller than its width, so obviously it takes longer to travel forwards / backwards.

How do i correct this?