Some liveries look really bad on Xbox

@chubsterdubster Not necessarily weird.

Your console has a finite amount of computing power for rendering the graphics, computing all the calculations the engine needs, and executing all the tasks the game asks.
To sort it out and offer a good compromise, considering that the resource consumption is always fluctuating, one trick devs use is the dynamic resolution feature.

On high demanding scenarios, e.g. race start with a full grid or when the car in front of you hit the barrier and the system needs to work out all the physics and debris and visual effects, the app will kick in a lower resolution for a few assets, requiring less power from the console.

So it's very likely that the game has a 4k, a 2k, a FHD, a 720 and perhaps even a 480p texture for most assets you see on screen. Cars, track and scenario objects, etc.

Looks like the game thinks it needs to ease off on the resource consumption at those moments you took a screenshot, so it had a lower res texture of that particular livery being rendered by your console.

Why? Was it indeed a very power hungry instance, with plenty tasks being run by the console on the background? If so, then maybe functioned correctly, and it needed that lower res texture to keep your framerate stable at 60fps.
But what if that was not the case, what if you were on time trial or on a session with most cars still in the garage and very few tasks running in the background for the console to deal with? What if your system still had plenty of juice to render the 4k version of that livery?

We don't know 🤷

And that's precisely why session report codes are needed, as well as a rundown of settings etc. So that the devs can check if the dynamic resolution feature was indeed working as intended, or it needs some tweaking. Perhaps it just so happens that that particular 1080/720/480 whatever version of that particular livery is just not that good, and the design team can redo it better, with less perceivable compression artifacts or the like?

🤷