Yeah, as said in another comment too: That’s very likely VLC’s post-processing. It doesn’t look bad on your Kodi, VLC just enhances it as it plays while Kodi actually just shows you the real quality. 😅
I use Kodi too as part of a whole automation setup (so I can use it like a free Netflix that only adds anything I watch while I only need to add filters once per series) and I have gotten used to it now as it doesn’t bother me anymore, but in the beginning I do remember noticing it more too, thus having to make that hard choice for the ease of automation over post-processing. 😅
Kodi is worth it on my Android box, though, as VLC’s magic doesn’t seem to be so effective on Android(TV)… 😜
I just use *.loc.al as a local dns entry in my own server with local addresses using devicename.loc.al and loc.al itself going to my gateway/routerpage. 😅