Blurry Background Images

Whenever I try to add an image anywhere on the page, in designer and preview, the image is blurry. However, when I opened a template page, this was not the case. The image preview was crisp and clear. It seems that whenever I manually add the image it becomes blurry.

The image below shows to images stacked vertically. The top image is the issue I’m having, blurry image resolution. The bottom is the template container which displays perfectly.

I’m completely stuck as to what is causing this issue.

Would appreciate any and all recommendations.

Here is my site Read-Only: LINK
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This is after I resized the top container