Problem with .mp4 videos (see blurry?)

Hello guys, I hope it's a pleasure to meet you. One question:

I have a variety of my simfiles that I made for these music videos with .mp4 to GB because I always use Vegas Pro to synchronise perfectly.

In my opinion, when I convert to 720 with less than 20 or 10 MB, it looks so blurry. I want to use 720p instead of 1080p for my simfiles to avoid lag. Is this advisable?

Also, to avoid quality loss such as blurring, when I compress, I always use MOVAVI video converter, but it is impossible to solve the problem. At least this song pack is sufficient with 1 GB because mine is more than 20 or 10 GB due to the video quality, and this is not good for me. What is the best programme for decompressing videos to mp4 without loss of quality or blurring?
It's a pleasure to meet you.

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did you try using ffmpeg to re-encode the videos to the format you want to use?

you can then set all the important parameters and get the right ones for your use case

for me itsn't easy, i use handbrake, bcause ffmpeg has enhaced with this, or movavi video converter

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