Can I ask why you are complaining about this on an SU5 thread when you were complaining about the same thing before SU5 was even in beta?
The colour banding and rough, pixelated cloud edges are visible in those videos too. It wasnāt that bad before.
Clouds were already downgraded with SU4, but itās with SU5 that quality took a major hit. Some things have been restored or improved since then (thanks to complaints!), while others like lighting and clouds have not.
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Donāt forget your are looking at a YouTube processed video as well.
Sure, even so it also happens in the sim as you mustāve seen. Bad compression there too? Would certainly explain the colour banding.
I donāt remember seeing any colour banding, but I did see a few cases of graininess at the edge of clouds.
I can point you to a much earlier video that has lots of clouds in it. I couldnāt tell you the quality I used for these recordings.
This one is from three days after release.
And this one is from a few days later:
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I record with GExperience - an app that is included with Nvidia and enables High Def recordings.
Thanks for your reply. So did I use GE but my recording wasnāt as smooth ā¦ However I have come to the conclusion itās possibly that my system and sim are PCIe4 NVme but I was recording to PCIe3 and I can soon change that . Btw did you load straight up to YT or have you maybe changed the parameters with another app because usually mine just get added stutters?
I recorded all the above with GE to a PCIe Gen 3 disk. Itās a 1TB 970 Pro.
Well then thatās a little strange as my Crucial Gen3 is about the same speed as your Samsung ā¦ However my tame weather vid was to the 4 and is much better so Iām not too worried.
This is from today (just a pic, still too lazy to start with videos)
Instead of clouds, why donāt we talk about the horrible reflections?
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Iām not sure if the new raymarching applies to clouds or not. Hills, mountains, and buildings all look much better than clouds.
All of you guys having problems with your clouds.. did you modify the user config at all? And possibly forget to turn off āread onlyā for SU5 so that it changes (and then reset your own settingts)?. I seriously do not have any of these issues.. except for the cloud reflection on water.
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I donāt think they are affecting the clouds, I just tried swapping between low and ultra and saw no difference.
Ah, I meant that they are reflected in a more convincing manner than the clouds.
Yes, I meant I saw now difference in the reflections between raymarching low-ultra. Equally bulky.
āInstead of clouds, why donāt we talk about the horrible reflections?ā
Oh boy, this oneā¦ They never, ever talk about that in their Q&A, but it still look like a 2000 video game. 
Reflections in general are terrible, cut-off on the screen borders, cut-off by the cockpit elements, trees that have a white outline when in front of clouds, ghosting of the cockpit elements when moving fast in front of clouds, grainy relfections on the plane fuselage/glass, etc etc There is still 10000 graphical glitches to be honest. 
I have no idea if they will ever fix those because once again, they never talk about it, but it overall looks very ugly.
I just put all my faith in DX12, maybe theyāre not working on it now because of thisā¦
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I saw the colour banding quite clearly today, and like the horizon line it seemed dependent on certain conditions.
With the the sun in front of me, I could see a red-green-red colour banding below the level of the clouds, and nothing above. It kind of looked like a horizontal rainbow.
I forgot to try playing with the time of day to see if I could make them come, and go.
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Horizontal rainbow is a great explanation of what the color banding often looks like!
I would also liken it to cloud iridescence. When you have thin clouds, the color banding looks very similar in my opinion.
So is it a rendering bug, or an attempt at simulating some other phenomena?
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Definitely a bug. It just happens to look a little similar to iridescence at some certain conditions.