I am having the same issue Xbox Series S seems to be Blurry also some textures only loading in once I am close to them like plants it doesn't look optimized for the Series S at all it's definitely not unplayable but it is very hard on the eyes and for me from what I can see if it was working properly it should be a very nice looking game.
I personally am going to wait for it to be fixed before continuing.
iv been trying to add a clip for over an hour kept saying file was to big then once I cut it down to pretty much nothing it told me the file type is wrong so I am just adding the Xbox share link you can view it that way guess Apple’s video file type is not supported on this site.
link to clip of issue it’s an Xbox capture share link.
https://www.xbox.com/play/media/gr57XtusWa