It shouldn't be seen with any setting. Nothing you can do to the device (short of involving a hammer) should change the content in any way. Compress, resize, zoom, do whatever, but it simply must not change the content at any time at any resolution/quality.
I'm just flabbergasted that such a compression scheme was ever implemented in the first place. Surely, there are alternative OCR based methods do compression that don't introduce these artifacts (that's putting it mildly) at lower resolutions.