I have the exact same issues, although I made it somewhat more acceptable by editing the UserCfg.opt file found in C:\Users\Username\AppData\Roaming\Microsoft Flight Simulator and changing the setting under Graphics (NOT Graphics VR) to the following:
{PostProcess
Enabled 1
EyeAdaptation 1
ColorGrading 1
Sharpen 0
Fringe 1
LensDistortion 0
Dirt 0
LensFlare 0
FilmGrain 0
Vignette 1
LensBlurMultiplier 1.000000
FringeMultiplier 1.000000
}
Again, this made it somewhat better, but they are still grainy and blurry.
Warning! If you change your graphics settings in the game, the file will reset to default and you have to do it all over again before starting the game.