eta Quest 3 - Distant surfaces look pixelated / blocky in VR

Development Platform & Builds XR Development
1

Hello,

I exported my Unreal Engine project to Meta Quest 3.

Performance is smooth, there is no lag, but when I look at distant surfaces I see square blocks / pixelated artifacts.

Project details:

  • Unreal Engine 5
  • Android ASTC build
  • Meta Quest 3
  • Lumen enabled

What could cause this issue?
Texture compression? Resolution scaling?

Thank you.