A late update on this thread on my experience.
I got updated to version 11.0 in May-2022. The issues with pixilation and smoothing controls have definitely been improved. My opinion and experience only but the issue is resolved on my TV. I kind of waited for football programming to finalize in my mind if the issue was resolved and it was, at least in my case.
So I am considered this closed. But it makes me think this issue was 100% software and leaves me wondering why TCL could not be more forthright on communication / service. It leaves me with a bad opinion of TCL and whether I trust their service enough to purchase another product.