Hi
Your screen capture looks OK in VLC so it seems it may be a setting in VP....
Check the resolution have you set for the VP display. (Options/Display/Preview Format.
If this is too low (e.g. 512 x 288) your display detail will not be too clear, particularly for the small screen icon titles, and particularly if you undock and enlarge the preview window to see it better.
Your video is 1016 x 1022 so preset the display with these custom values.For maximum resolution in preview change the settings to 1920 x 1080. to retain the 16:9 full frame. That should improve things but may make caching etc slower.
Nat