This is an issue that has persisted since Day 1 (Sapphire Pulse 5700XT pre ordered since release date). I was hoping subsequent driver releases would maybe fix it one day, but so far this has not been the case. I always have the latest graphics drivers, Windows Updates, BIOS, ect., and as I've said already this problem has been persistent since getting my 5700XT. I play a large variety of different games including other Unreal Engine games, and this issue is unique only to TSW, so I don't really think it's defective hardware.
Train Sim World uses an older build of Unreal Engine, and the motion blur technology that it employs doesn't interact well with AMD drivers. When this motion blur setting is turned off, there are no issues whatsoever. The picture is crystal clear. However, one of the defining features of TSW is this technology which makes things like rail ties blurring at high speeds look nice and realistic. So simply turning it off is not an acceptable solution. The issue is that when I move my mouse (or controller), it sometimes gets stuck in this permanent blurry state. This can be rectified by zooming in and out or moving the mouse a little bit more to "unstick" it, but it is a little annoying, especially when you want to take screenshots. Attached are pictures of this phenomenon.