Imported video is blurry

I find it hard ot believe that as expensive as captivate is it can't seem to handle a simple video insertion. It's 2019 (11.5.1.499) on W10 and though the video is not particularly large (984.95 KB) and is directly inserted into Captivate(video was captured saved and added directly), almost immediately after adding the image pixelates terribly and resembles the best of photocopiers from 1989. This is progressive slide video and after looking at all the settings in captivate and attempting pretty much everything I could think of (or find on the Internet) I even reset captivate (lower case intentional for what has become an aggravating POS) and it still occurs. I disabled MS cloud sync and even made it a stand alone system after a couple of shut downs and restarts. If anyone has a reasonable explanation (and fix)  I'd like to hear it.