Question / Help Minecraft Blur While Using OBS Studio

You are using NVENC, which is a hardware encoder. NVENC and hardware encoders usually require a higher bitrate because hardware encoders trade encoding speed for quality. Since you are recording at 1080p and 60 fps, I would recommend increasing your bitrate to 50000, or if you have the storage, use CQP with all values at 18. Also, change the NVENC preset to high quality.
 
CQP with all values at 18 gives you the highest quality but highest file size. CBR with a bitrate of 50000 gives you the smallest file size but the quality does decrease a little bit.
 
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