Unable to Load Photo

You wrote "My phone is fully updated from the recent update" - which system version is currently installed on your iPhone? "Fully updated" can mean differnet systemversions, depending on the model of your iPhone, as not all models can be updated to the same version.

If your iPhone cannot "download a higher quality version of this photo" it can mean several things:

• either your iPhone does no longer have enough free storage on your device to download the image in a full quality
• or you are running low on iCloud storage and iCloud is no longer responsive
• or Photos cannot process the codec or color profile of the version it is trying to load. This can happen, if you are having older items in iCloud that are no longer support by the current system version
• or Photos cannot reach the iCloud servers because of a problem with the Internet connection or a a firewall interfering with the access to the servers.

You may want to check, if you have sufficient free cloud storage and free storage on your iPhone. And check the photos directly in iCloud using a web browser to view your photos at www.icloud.com . Can you download the blurry photos to a computer, and can you open them on a computer?