aidanspiker
Thanks. Your MacBook Air, lovely as it is, is not very powerful which is why the default settings are low. The higher the settings the more the machine has to work to provide crisper graphics. Nevertheless, please change these settings and see what happens:
Display type - change to windowed mode. You can grab the game window and resize it as you would any other app or Finder window
Vertical Sync - enable
Edge Smoothing - on
View Distance - high
Lighting - high
Visual Effects - high
Laptop mode - scroll down a bit further in those graphics options, it's underneath Post Processing Effects, and make sure it's unchecked
After changing the settings save them then quit and relaunch the game.
Your game may be a bit laggy and slow after making these changes but this is just for troubleshooting.
You could also reset the NVRAM on your Mac. I'm not sure this will really help but I would try it and it won't hurt to do so - https://support.apple.com/en-gu/102539 You have an Intel Mac.
Is there any reason you are still running macOS Big Sur? You should consider updating for security and improved performance reasons.