Dynamic Image Transformation Quality

Hey, when I transform an image, the new image quality is bad. I made a quick 1-min video showing this:

https://www.loom.com/share/801656a6e3544dd49cbab635c54a64b6?sid=ff2637a3-b5c3-4e6a-9226-fd06092b370f

What do you think I can do to help this?