Iphone 16 pro huge problem.

Photos ProRaw X5 zoom, distance about 70cm. iOS18.0.1 Iphone 16 pro. I never had this problem in 14 pro, although there was no 5x. On 1x it is the same when I have some smaller text e.g. on a wristwatch. the letters are blurry, and the phone adds elements that do not exist, it’s like rubber eraser or first generation of AI with prompt “newspaper” please look at my examples below. Is it the fault of the hardware or the software? I was in the Apple Store and the model on display behaves the same way.

[Edited by Moderator]