The old issue with pixelated and grainy clouds is back (see screenshot below).
It was definitely improved with the last World Update 3, very nice clouds. But then we had the outline against clouds and objects.
Now, with Sim Update 3, the outlines are fixed, but the pixelated clouds are back again. Maybe there is any correlation 
Hi Guys,
On a flight today i regonized that the clouds still pixelated after zooming a bit in. And yes all my online services in the msfs 2020 set to active/on.
Do you have the same issue?
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Hi,
No, my clouds are good now. Very smooth and beautiful, no visible pixels.
Hope you can fix it.
Happy flying buddy! 
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ok, i think its a issue with my bandwith? i have about 27mbits down and 14mbits up?
And thanks for u 2
Previous topic marked as ongoing improvements as the development roadmap stating as well and no one said it has been fixed
Personally I had very bad clouds (just like your top pic) but noticed good improvements. Much more pleasant as it was. However still have the pixelated edges. I am sure they are aware of it, I would say give them more time (I am 99.5% flying with airliners so I see these clouds all the time, still let’s see what the sim update keeps for us) 
Yeah we and i are a bit inpatient i think with the MSFS 2020 and the developers behind this beauty and realistc simulation of Aircrafts. I mean this Team of ASObo and MS had no experiences of MSFS 2020 and released such a good Flightsimulator in August 2020 which i think is the best and realistic simulator which we ever have and had. Yes we have for now bugs and issue but these will get for my opinion fixed from time to time.
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should i update from my 16gb of ram to32gb of ram. is it better to have 32gb ram in the msfs2020. Or are the 16gb for now enough ram?
How many clouds were there? Few clouds, overcast? I still have pixelation on mine pretty bad and I’ve found(just like it was before the update) the more clouds there are the worse it gets. When I’m on the few clouds preset, 95% of my clouds looks fine, but as you get to overcast it gets worse and worse and my clouds look just like OP’s. My clouds are set to ultra.
too dull and smooth now imo!!!
it was overcast clouds and my clouds setting is also set to ultra
That was one issue that was fixed in this release on my end.
This is what I use to do since the product release but since version 1.13.16 Sharpen and FilmGrain get reset to 1 automatically(*). So it’s a dead-end for me and the last MSFS version is a downshift.
(*) Even if I’m not going to the graphical options to change whatever. At each boot, MSFS seems to set Sharpen and FilmGrain to 1 automatically.
I have the same issue also. It’s a little bit reduced with this patch, but in stormy weather soft shadows and edges of clouds seem grainy and pixelated. I didn’t bother to go through the steps of the file you mentioned above. I’ll give it a try. This issue carries on though.
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Clouds look epic now
Uploading: 2021-02-26 (61).png… for me it’s worse than the old patch, and on top I have big loss of fps
I bought the sofly weather add on, cost a Fiver U.K. and is great, had two free updates so far of about 10 each weathers, last 10? Were U.K. style / orientated weather to go with the update, see
As I wrote above, I had improvements on the only type of cloud, which I have/had problem with, but does anyone out there who encountered this since the last update? Since then I have a new, verrry grainy one, mostly at lower altitudes. The rest are fine
I really dislike the shape of clouds now. It looks a ball of cotton.
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Silly question but do the clouds actually look better / more realistic?