To add to this problem, if I click on a photo to edit it it immediately sharpens up in the editing window and stays sharp until I look at another photo. It's a huge problem when trying to figure out if a photo is any good or not, because when you look go forward and back between your photos they are not clear, to check if they are clear you need to go to edit and then they clarify.
I can also confirm that this happens in my iCloud photo library (which is set up. optimize photo storage) but it also happens when I use a local library - with all images store on my computer.
I can also confirm that if I try to put those photos into a slideshow that the photos remain blurry - the only solution was to export all the photos as JPEG and then reimport them and add them to a slideshow.