I'm facing the same issue with my ultrawide (LG34UM88C-P 3440x1440) on the M1 Air. Text in native resolution is incredibly small and difficult to read. The scaling options for this external display only make the UI bigger and blurrier.
Windows machines handle this effectively, keeping the sharp resolution while scaling text up. Last week, I nearly purchased a Dell XPS13 with the intent to sell the Macbook, but I hesitated.
Adding my voice in hopes this is resolved in an update ASAP.
cashforclues
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