When you set an image as desktop background, the image is compressed at 85% and saved to a file named TranscodedWallpaper in your Themes directory. In Windows 10, you can override the default wallpaper quality for JPG files using a registry edit.
Set Desktop Wallpaper Quality to 100%
Start Regedit.exe and go to the following key.
HKEY_CURRENT_USER\Control Panel\Desktop
Create a DWORD value named JPEGImportQuality
Double-click JPEGImportQuality and set its value data to 100 (decimal)
Restart the explorer shell, or logoff and login back for the change to take effect.
You’ll need to right-click on the image and set it as wallpaper again, so that TranscodedWallpaper in the following folder, is overwritten.
%Appdata%\Microsoft\Windows\Themes
You can note the increase in TranscodedWallpaper file size (and the image quality) after setting JPEGImportQuality to 100. JPEGImportQuality value data can be anywhere in the 60 – 100 range (base: decimal).
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