Camera Raw and the FujiFilm X-S20

I recently bought a new camera – FujiFilm's X-S20. With my previous Nikon camera I used to drag the raw files into Photoshop and edit them in Camera Raw before exporting out jpegs. I've done the same with initial photos off my new camera and they are looking absolutely woeful.

I've attached two jpegs, one was processed in camera and the other has come via the raw. All I've done to make it is drag the raw file into Camera Raw, select the Provia/Standard camera profile, open the file in Photoshop, convert it to 8bit then save out a jpeg.

As you can see the images I'm getting from Camera Raw are blurry/lack sharpness. It's less apparent in this image but a lot of them have a strange glow to them. I'm using Camera Raw 16.0.1 with Photoshop 23.5.3 (2022).

Is there anything that can be done about this?

Cheers.