You can see the Pencil by Number Set on the back cover: the knight looks very similar to Dirk from Dragon’s Lair, surely not a coincidence. The artist on this set is uncredited. More interesting are the two Giant Advanced Dungeons & Dragons Pen and Poster Sets (Arrow, 1981)—an early license with great art by Larry Elmore, Jim Holloway, and Jim Roslof—that you can see at The Acaeum.
Hasbro also released a D&D Lite-Brite Picture Refill.
Photos are via eBay seller burntwire, who has been selling very rare merchandise from the TSR archives.