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*edit* Nope, didn't change anything.
I'm inclined to say it's CPU which is busy counting various factory stuff and I'm guessing terrain deco, plants, monsters and conveyor items are lower priority maybe?
Don't see why the CPU would be to blame, though. Something like this - texture rendering - that's all GPU, which shouldn't be THAT busy.
As for where it's most noticeable, circuit-boards is the worst - I've been building out my circuit-board printing facilities, and it's REALLY hard not to notice how blurry they look in lo-res.
Still, the fact that there IS an 'experimental conveyor item rendering' option suggests that conveyor items are rendered in a different way from everything ELSE in the game, which goes some way to explaining how this issue happens. Doesn't tell us how to FIX it, though. Maybe I should just report it as a bug? At least, it seems like I'm not the only one experiencing it, so it doesn't seem to be an issue on my end, or at least not PURELY on my end...
LOD (Level of Detail) is CPU-side; it's (supposed to be) based on distance from camera (ie, player).
That being said, this could also be a matter of not enough VRAM on the GPU; higher-res images didn't make it into the texture buffer, so it uses the lower-res images that did.
As a "shot in the dark", try disabling LOD Dithering in the Video options, see if that helps.
Based on specs listed on steam store I should be able to run Satisfactory in maximum detail but it slows down whenever I add two or three wall-mounted lights, so not everything is right with that description either. Toggling options and observing what changed and how is too much work to have an enjoyable time with a game. In the past I did that, but now I can't be bothered.