There are two optimizations present that make the game look noticably worse, I will go over both.
What is shown in this image is the presence of Ordered Dithering, examples here:
This dithering is caused by the Post Processing Quality being set to Medium or higher.
As shown, the room looks far less compressed on Low than on Ultra, both images are PNGs.
Now I do not have a name for what this is, but this should be adjusted through the View Distance. Seeing how it remains untouched by said graphical option.