TaP,
Does this sounds like your problem? It's been experienced by me, and certainly other, in what appears to be an exciting, all-new bug Apple has released for free to Photos users.
https://discussions.apple.com/thread/251495562
The common symptom seem to be that it's only the photos which have been edited that appear pixelated (or, to be more specific, appear to simply be the low-res thumbnail projecting as the full-size image). And, as soon as you click Edit, the actual full-size phone does appear. Which, to be sure, is as janky a hack as one could imagine. "Oh, yes, I'd love to show you the pictures from our trip, but I'll need to first switch into distracting, slow Edit mode, because Macs can no longer simply display photos in viewing mode."
Does this sound familiar, or do you instead have a different flavor of a similar bug? In which case, oooh, custom bugs! And who says Apple doesn't innovate anymore?