It is very strange, but my zoom behaviour suddenly changed. There wasn't update installed. I've only upgraded to Big Sur recently, but I am not sure the problem appeared after that, probably later.
I've noticed when zooming I see degraded quality and even the pixels. I realized the image displays as 100% zoomed but in fact it is at 200%. When I manually zoom to 50% I get the 100% view. I've made the comparison by exporting a file and opening it in PS, zoom to 100% and switch between the two apps.