I’m sure you’ve tried it already, but for me turning HDR off in the game settings helped with the general washed out look I experienced (on my XSX + LG OLED setup)
I don’t have HDR turned on, or game mode in my TV turned on, Bing Mapping is turned off, I’m in 1440p only in “offline” mode. Smooth as butter, no stuttering, all WU’s deleted, only (4), 3rd party aircraft installed. As mentioned above it seems to be atmospheric, geograhical related. It’s a funny thing you know. I even experienced this with the 50" TV I was originally using. I even went so far as hooking up the Xbox to a Sony Bravia 1080p 46" TV. It was still washed out and foggy looking’ish. I think at this point its 6 of one, 1/2 dozen other reasons it still has as wash out look, less of course since messing with TV settings and calibration if I did it right. Who knows, its working. But the perfectonist in me is still perplexed that I can’t get all that wash out look eliminated completely. sigh 
Why won’t it go away 
lol
Judging by your screenshot, I’m not sure there’s anything being displayed wrong. I think you just find the atmospheric fade-out effect in MSFS and the brightness tone-mapping that MSFS does to not be to your liking. (You’re not alone, many people have complained about both being a bit off.)
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Ya I’m thinking your right. It has to be inherent to the SIM itself. Sad really, because it takes away from the immersion especially for me because I navigate by compass heading and VFR only. It makes it hard to see the runways off in the distance up until you get close enough to line up to land. The moving map helps with that too. Oh well it is what it is, could be worse I guess. Hope this isn’t and issue with 2024 next year. 
Ok I did some more fiddling with Console settings and TV settings tonight and this is the best I can come up with for me. Any other Xbox users who read this can try these and see if it works for them to with the Samsung 690, 43" TV. I’ve read several times here that 1440p is the sweet spot and I’ve googled it too. I’m a believer now. 
Console : 1440p only
Data: Online Functionality “ON”
Bing Mapping " ON"
Live Weather: “OFF” (High Level Clouds only in game ! )
Wind: “OFF” (unless you want some)
Game Mode(TV): “ON”
Pics of TV settings !
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You should use Game HDR = on.
Use a HDMI cable that is spec’d for HDR. HDMI 2.0 or higher.
Turn on HDR in Windows 10 or 11.
Turn on HDR in FS2020.
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To my eye there is still too much Blue in the images. Try adjusting the color and tint a bit. Also, Game Picture Mode is usually more to the Red/Yellow side. Theatre mode gives deeper black tones if there’s one available. Looks much better.
HDR is greyed out in game and the TV’s settings. Not using windows, im on the Xbox X series console. Im using the high speed HDMI cable that came with the box.
Don’t have theatre mode.
I’m not gonna overly fuss about it at this point. I don’t want to be like some other users I read about where they do more tweaking and playing with settings than flying. I got it where its tolerable (despite my obsession for more clarity). I can live with what it is right now. Maybe a true gaming monitor is in my future…Hmm
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I thought you said that made it stutter?
Good decision! No point playing without that at least!
I’m betting the cable is no good. It may have come with it but that means it’s probably a cheap one.
For a screen that big, 4K is the way to go
Haha. And a PC to attach it to!? 
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Hi I’m not sure this is going to be hugely useful to you so forgive me if it isn’t! I think one of the things to consider is how a flight sim like FS2020 is trying to approximate reality. As a pilot myself there are many days when due to atmospheric conditions, pollution, the effect of haze, limitations of human eye sight, etc that means visibility is very limited at distance. When I take people flying they are often surprised to see this. What you see in the sim isn’t that far removed from reality - often you cannot make out detail in the distance - clarity is rare (sometimes crisp autumn skies are wonderful). FS2020 can often look blurry and lack definition in the distance but this is what it’s like often in reality. We are so used to seeing crisp ultra detail on PC and console games but that isn’t what we’d see in the real world given the limitations of human eye sight and atmospheric conditions.
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Absolutely agree with this. It’s why I’m more than happy with 1440 and DLSS with 140 LOD! 
But those colours do look a bit weird in his pictures. Maybe it’s just the camera doing it.
“Baracus250”, yes I did say it stutters with game mode “on”, in 4k, not 1440p.
and “Flyboy709063”, I would have to agree with what you said.
As far as the HDMI cable its the one that came with the Xbox, it says right on it “High Speed”. I can"t see MS giving you a bad cable with their top of the line console. If anybody has had issue with the stock cable I haven’t read anything about it yet. HDMI cables aren’t cheap to buy. $$
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This is true. On my last real-world flight I sat looking out the window at cruise level and thought it really does look hazy and washed out in real life too.
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High Speed does not mean HDR capable.
HDMI 1.4 & HDMI 2.0 does mean something.
But, if you have a 4K, HDR TV, why not use it.
HDR is better than SDR.
Note that I know nothing about the Xbox Console.
I don’t know if it has HDR capability or not.
It does, HDR10 and Dolby Vision.
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Have you enabled HDR mode on the Xbox Display/Graphics Settings themselves? I don’t have Xbox, so I’m just blindly guessing here. But theoretically, in order for the TV to detect an HDR signal, the console itself needs to send out HDR signal, which MSFS is only “piggybacking” on it.
So you need to go to the Xbox General Display/Graphics settings, and look for HDR option to be enabled. If you see HDR10 or Dolby Vision. Make sure you only enable HDR10 and disable Dolby Vision. This is because MSFS only supports HDR10 and having Dolby Vision on would make the signal incompatible causing you issues.
Once that’s enabled, your TV should detect that signal and able to enable the Game HDR mode. And MSFS would also detect that your Xbox is outputting HDR signal, and it has the option to enable HDR as well.
Believe this or not, with game mode off on my TV, and HDR off (both in game, the console and my TV), the washed out horizen issue is not as pronounced. Its worse when those items are turned on. Seems It indiginous to the SIM itself.
For HDR to work all items must support it.
Windows, FS2020, TV.
If they do, then the only thing left is the HDMI cable.
Check your HDMI cable.
Are you sure that it is capable. Check the Specification.
It must be HDMI 1.4 or higher.
I’m on The X series console. The cable that comes with it is 2.0. It’s apparently a High Speed cable. I’ve played with all kinds of settings for the TV and just doesn’t seem to go away completely. Its bearable as long as the aformentioned items are turned off. Ironically, its even less pronounced on the new Xbox S series carbon black console I just bought. Both my TV’s (50" n’ 43") are the Samsung 690 series