Using data from USGS, I downloaded several DEM and used the mosaic tool to stitch all the layers together. I noticed that once I used the hillshade spatial analysis tool the resulting rater file contained a bunch of square tiles. Why does this happen? How can I get rid of it?
everything the same regarding the rasters? (cell size, etc etc etc)
Give the multidirectional variant of the hillshade a try and see if it is as noticable
Hillshade function—ArcGIS Pro | Documentation
I tried multidirectional and it did not seem to work. Are you saying that all the parameters to run hillshade should match the DEM raster? (sort of an amateur here)
it is a good idea, as is using projected data