I do believe what you are experiencing is attached to the LOD calcuations the sim is using, the loss of quality obviously as documented already is substantial with every few thousand feet, the degradation has become far worse and I believe this anomaly is somehow linked to the LOD calculations.
In all honesty I haven’t seen it this bad (as per your video) but then again I haven’t played the sim since the textures started degrading rapidly. I hope Asobo along with MS find a solution to these strange LOD degradation issues.