Screen resolution

Hello everyone .After the new update on my MacBook Air m2 ,I saw that the screen resolution is set to default ,but the default one is 1470x956 and not like Apple advertised 2560x1664 .Is this normal and will it affect the quality of the image if I play a video like 1440p ?Is there an option to go to the max resolution without loosing the visual of the display(I have tried to go there from the settings ),but the text on the got smaller)