When you select "Scaled" resolutions, your display will run at its MAXIMUM possible native resolution. The display should be excellent, and the text [and ONLY the text] has been scaled up to be readable, with lovely edges without stair-stepping along the diagonals of letters.
The issue is that when you go to look at what resolution it says, It LIES to you. You can no longer use the numbers it is telling you for comparison with other display or other settings.
To get accurate information, IGNORE what is says In Display preferences and use:
menu >about this Mac > (system report) > Graphics & Displays ...
You will see two different resolutions. The one labeled Resolution is the actual resolution your displays set to without any fiddling around. The one labeled User Interface Looks Like is what resolution you would have to be running to get comparable- looking letters. In other word, not comparable to anything.