Just a guess here but I think that’s a ghosting problem. Mostly because of AA.
Are you using a laptop for development? If yes, then you probably need to plug in the power source to get the maximum performance.
I did the test and there are no problems with the monitor.
if this was a monitor problem, you wouldn’t be able to see the blur around the character in my initial screenshot. This is something that is being caused and rendered by Unreal Engine. I’ve noticed that everyone has this issue in videos on YouTube.
As @56legion mentioned, your issue is likely caused by Temporal AA (Anti-Aliasing). Check out this post and thread that contains solutions for ghosting and blurriness in UE4:
Turns out that it is the horrible AA. I tried to follow that tutorial but it didn’t resolve the issue. Are there any more resources I can have a look at?
This is a rare case scenario (from my experience). Most of the time, if it is affecting you by default, then there are a couple of things you may try to check. But before that, you need to understand that UE5 is very intensive. I’m afraid you can’t do much if you have a low-spec platform. You can read the requirements here.
It is advisable to fulfil the recommended spec rather than the minimum spec in order to get the full potential of the engine. If this is not your case, then:
Update your drivers to the latest version.
Make sure your ram is not intensively occupied. By this, it simply means to decrease the background services.
If directx 12 affects the performance, try to change it to directx 11.
Decrease the engine scalability to see if it fixes.
Set the post-process volume to default values.
Do check your monitor’s refresh rate as well.
Try disabling the motion blur to see if this is the case