Seems like they did a mixed job with this Switch 2 Edition. There are instances of annoying flickering in certain objects and handheld mode is a blurry mess apparently due to a very bad upscaling solution that reminds me of those GBA filters to smooth the pixels:

https://packaged-media.redd.it/dn9ewvzdphkg1/pb/m2-res_480p.mp4?m=DASHPlaylist.mpd&v=1&e=1771610400&s=97f2675c78c4292e1f09ee384ac879ddc2a9cc19

https://www.reddit.com/r/Xenoblade_Chronicles/comments/1r974h6/straight_from_handheld_footage_of_the_switch_2/

Hard to tell what flickering/blurring is the game and what is just the video compression in those videos. I still haven't played Xenoblade DE yet so hopefully by the time I get to this any issues are ironed out.

The game almost certainly doesn't have a temporal upscaler. Without decent motion vector data, temporal upscalers break, and I doubt Nintendo/Monolith Soft wrote code for motion-vector tracking beyond what would've been there for a 2015 Wii U game.

I think people are just noticing what happens when you upscale earlier deferred rendering titles without applying a TAA solution and just depend on SMAA instead.

You get specular shimmering and temporal instability. Plus Monolith Soft games always tend to have noticeable pop-in.

TAA introduces a lot of blur to the image, but it does solve these problems. And then DLSS/FSR2+ have improved upon thr problems TAA introduced, also introducing artifacts, but far less noticeable ones than shimmering and aliasing.

Edit: I expect XBC2 and 3 definitive editions to have DLSS because they already have Monolith's custom TAA solution and therefore motion-vector access.

Nice, now do 1, 2 and 3.