Even though I play it on my old low end laptop, I still able to get a stable 60fps on medium settings at 1080p (Linux) and the game is still gorgeous looking probably looks better than most if not all UE5 games released in the past 3 years.
Jagged edges are the opposite of blurry. Blur smooths out sharp edges.
When edges are sharp and crisp, that's when the jagged nature of square pixels is visible.
The screenshot you posted here has lots of blurred edges. Look at the grass, trees, and hair.
Maybe you could post a screen shot of the problem you're talking about?