Blurry Images WordPress 5.8.1

Not sure why @fuxia deleted my first answer, but I may be able to help. My original answer was to say that I was experiencing the same issue. I have discovered the issue and perhaps it will help you.

In the Jetpack plugin there are a series of settings under the Performance tab: Enable site accelerator and Enable lazy loading for images. I turned both of those off in their entirety and my images are now crystal clear as before.

So in my problem, WordPress 5.8.1 had nothing to do with the issue.

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