What you are describing is indeed a fairly serious Windows 10 DPI issue, but a different one from what this thread is about. To fix your problem, the best current solution is Windows 10 DPI Fix which will solve it. Make sure to read all info there.
I have simillar issue with windows 10 if i keep the default 100% scale the text, menus, and icons became very small and hard to read and when i scale to 125% i face the blurry issue.
I need a solution i have reinstalled the latest nvidia display driver and it did not reslove the issue.