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Don't think this is actually true. We stream high definition video regularly nowadays. It's not a question of resolution, but of other qualities of the recording, the way differences in lighting is handled etc. Those imperfections are not smoothed away by compression.

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To your point, I've seen some modern webcams accentuate extremely minor facial blemishes to the point where observers actually notice it and call it out, concerned that the person is sick or has had some sort shaving incident. I would think compression would make that even worse.

Mine does this. It makes me look drunk. People who met me in real life after lockdown were surprised I looked normal. I keep meaning to find some software that will turn the red down.

Try different lighting. Less warm white.

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