There are a lot of problem with VHFM…buggy, much more difficult to implement, resolution limits. Virtual texturing is a mandatory requirement also which means your blurry landscape problem is not fixable with the current limitations of VHFM if it is because of the VT resolution limits.
They address a lot of these limitations in Epic’s video on VHFM on their channel (there’s a 1-hour deep dive on this) with a “hopefully more work coming soon” approach but basically that work never came and there has been no resolution to these issues as of yet (and no discussion on fixing them as far as I can tell). Tessellation was deprecated before this as-a-replacement was actually ready for users and then they deleted the forum section where concerns about removing tessellation were widely discussed.
Basically if you need landscape displacement, use UE4 until they either re-enable tessellation in UE5 or finish work on an adequate replacement. UE5 is “full-release” but clearly not ready for landscapes.
ATM UE5 seems to be a in a state where almost everything is experimental and nothing fully finished or working; water plugin, VHFM, volumetric clouds, nanite…lots of things are in a sort of half-baked state and it’s hard to imagine seriously using UE5 until some serious time is spent on fixing and finishing rather than new never-to-be-finished experimental features.