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There was a software issue in video processing when using the TV in Game/Graphics mode. Sony’s TV software update version 6.0414 addressed this issue.
How to download the latest software update for my Android TV
In order to receive software updates, make sure the Automatically check for update or Automatic software download setting from your TV is turned ON. This way, as soon as an update is available for your device, it will start downloading automatically. If you turned this setting OFF, you will have to manually check if updates are available for your TV.
You can download the update from the downloads page for your TV model and manually install it.
I downloaded the latest software update, but the text on the TV is still blurry when 4K120 Hz signal is input
4K 120Hz support is a relatively new TV feature designed with video content in mind rather than still images. The advantages of the 120Hz refresh rate, such as smooth and flicker-free video, are therefore most noticeable when using the TV in Game/Graphics mode.
When displaying still images, we recommend changing the signal setting on the output device to 4K 60Hz to obtain the optimal image processing.