So I am completely stuck on this. I have checked out the Raster Effect Settings and tweaked settings :
I have tried turning the Anti-Alias on, changing the resolution to 150ppi as well as 300ppi, changing the pixels around the object, and checking and unchecking the preserve spot color box for the hell of it; but the blur is still pixelated no matter what.
I didn't have this issue before the update hit, so I am not sure what the settings were at before, but it is driving me mad.
Pictures posted show current settings and outcome.