External Monitor resolution issue

Hello Folks,

I've got MacBook Pro 2020 from my work. I don't have admin permission on it. Also I know that IT has on purpose restricted some access to some services and so on. That's fine .. but I assume that my case is not related to permission.

My MacBook runs MacOS 13.5

Today I've bought a new Monitor Acer XZ306CX 29.5". It should provide Maximum Display resolution 2560 x 1080

I connected it to MacBook via adapter and HDMI. To the same hub is connected another monitory HP 21" ( old one ) using VGA port. BTW: the old one has better picture than new one.

My issue: the picture on Acer is not good, not sharp, blurry ... not as expected. I see that current resolution is 1920 x 1080. I checked Display settings on MacBooksee attachment)

I called Acer support. They said that my issue is because MacBook is mirroring but it should extend. I tried to find this option. but I don't see it.

Could you please tell me what is wrong? In case this is due to my 'restricted' MacBook .. I could live with it .. but maybe it's somewhere settings are wrong or etc?

Thanks