After update 1.20.7x, Minecraft's screen quality suddenly decreased on Xbox. Trying to better explain, the game quality doesn't looks totally HD anymore.

Steps to better notice 

1. Some of the best ways to notice this issue is looking in the game's texts/UI's.
2. If enough attention is paid, you'll notice that the texts looks blurry and not with the best quality/previous quality before 1.20.60.
3. Once again, notice the decrease of quality. Not totally HD.

ALL elements on the games's screen also have decreased quality, but they are a little harder to notice.