Looks like I have to be happy your "source" is not in H.262. What I meant is that you did not provide the snippet from the mezzanine the Blu-Ray was made from. Sorry but your source is Not So Good.
Quote:
Please zoom in and you'll see the problem is far more pronounced in the encodes.
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My point that most bits go into artifacts still stands. I could zoom in but I am too afraid to contract eye cancer.
I tried encoding your VC-1 snippet and got this at 4Mbit video with a differenct encoder:
https://drive.google.com/file/d/1HrT...ew?usp=sharing
While the hard blocks from VC-1 got smoothed out due to rate I see no additional problems introduced around the hair ?