Why does my game look like a low quality gif?

I am working with the Meerkat DEMO project made by WetaDigital for Unreal Engine 4.26. I just want to run some self made realtime animations with the Meerkat asset, however, the game, in viewport as well as when it’s playing look awful. Like a low quality gif.

326470-bad.png

I’ve tried to migrate the Meerkat BP into a new project and then it runs fine. However, then the groom isn’t animating properly hence I can not use that solution. (Issue demonstrated in this video Unreal 4.26 Meerkat Demo Groom issue - YouTube) Hence I’ve resorted to work in the original MeerkatDEMO project. I assume it is some sort of rendering setting but I could not find it when comparing it to a normal project’s settings.

Thank you for all and any help or suggestions.

Is the postprocess ussing a lut?

No, no LUT in use. Don’t think it has anything to do with postprocessing since turning it off/removing it makes no change in regards to the weird shading/pixeling.

maybe this could be the scalability settings activated when performance gets low ?

set them all low then back to cinematic .

and uncheck the" monitor editor performance " so that it doesnt change in future