An error occurred while saving the commentMichael Slack commented
A workaround for this is to have two screens available to you. One you are working on and has your presentation or whatever, and the other has OBS. You set up your OBS scene with your video overlay, etc, then right click and full screen projector preview to your one non working screen. Then when in TEAMS, you share your OBS projection preview and then the video overlay is HD and looks great. So instead of trying to use the OBS virtual cam with a scene, you can achieve the same thing, but by sharing your screen vs showing your video feed (selected to OBS).
Hope this helps in the interim until they resolve the video quality.