I've been aware of this method, though it's not exactly what I'd prefer as it doesn't entirely fix the problem (tends to create extra artifacting & shift the color) if there's no other option then it acts as a moderate band-aid. Images are 1.Original 2. Oversaturated Issue 3. Preset Fix

The Levels fix is an exact method for unleveled footage.

The three images you posted are all different frames at different magnifications, making any attempt at comparison ridiculous.

You have not posted your recording method nor settings nor MediaInfo nor input / output samples. Therein lies the root of your problem, not the Levels FX. Follow especially Section C here:

https://www.vegascreativesoftware.info/us/forum/important-information-required-to-help-you--110457/

Also, I'm sure you are well aware that the RGB Vegas Preview does not represent the player (output) levels. It is different, and that is important to understand.

Alright wise guy, if you want the nitty-gritty I record using OBS Broadcaster and here are the settings
As well as that here's my Vegas settings as well
I'm not as keen on capturing a frame as you may be but here is another 3 slide example, the resolution and coloration are the same regardless of the individual frame difference. With the left being the original, then Fix, then Unedited.

As well as that here's the 3 original recordings to these pics in the same order as the images.

If you have any more useful tips I'd appreciate it.

Which version of VEGAS Movie Studio (not "Movie Maker") are you using, basic or Platinum? Note that the basic v. is rather restricted.

This is Platinum 16.0

Wise Guy here.

I see neither your OBS encoding settings, nor your Vegas render settings, both of which will affect your image samples. I did post a link to help you identify and share those parameters. And your uploaded clips are post-processed by the receiving server, so they're not of help either. If you would like a meaningful analysis by your peer editors, please follow the guidelines already suggested in the link given for your convenience.

If you would like lossless OBS capture, my current suggestions are at the end of the thread below.. As far as the codecs and settings you are using in OBS and Vegas, I am still in the dark. Yes, I can see there are generational encoder differences. Those are expected from subsequent generations from Long-GOP Interframe encoders, which I suspect yours are.

https://www.vegascreativesoftware.info/us/forum/faq-what-obs-studio-settings-work-well-with-vegas-pro--109925/#ca762521

Here's the encoding info for OBS which isn't really a problem for this issue moreso how Vegas changes it.
and as for the Vegas encoder settings it's nothing custom just the default 'Make Movie' settings

Searching the custom rendering options shows no presets chosen aside from audio, which is fine.

and look, at this point from what I've seen online about this issue there's no frank answer or explanation for the issue. But to a learned layman who's used this software for 2 years weekly it just seems unethical for the software to perform it's own augment of the source footage out of the box (and no using a Custom render template doesn't really change results). I've bared with it and can continue to deal with it but it's just annoying, was hoping there'd be a simple solution for a rather simple issue of keeping the source video presentation.

No MediaInfo or Vegas file properties, no original file uploads, no help.

Best of luck.

Aight Aight, I installed MediaInfo for this
maybe this could shine some light then?

and that Vegas properties

 Name: Original.mp4
  Type: AVC
  Size: 15.87 MB (16,249,156 bytes)
  Created: Sunday, November 22, 2020, 3:15:11 PM
  Modified: Sunday, November 22, 2020, 3:15:11 PM
  Accessed: Monday, November 23, 2020, 1:06:02 AM
  Attributes: Archive

Streams
  Video: 00:00:10.511, 60.003 (VFR) fps progressive, 1920x1080x32, AVC
  Audio: 00:00:10.471, 44,100 Hz, Stereo, AAC

Summary
  [TCFM]: 8

ACID information
  ACID chunk: no
  Stretch chunk: no
  Stretch list: no
  Stretch info2: no
  Beat markers: no
  Detected beats: no

Other metadata
  Regions/markers: no
  Command markers: no

Media manager
  Media tags: no

Plug-In
  Name: so4compoundplug.dll
  Folder: D:\Vegas\FileIO Plug-Ins\so4compoundplug
  Format: AVC
  Version: Version 1.0 (Build 8532)
  Company: MAGIX Computer Products Intl. Co.

Hardware encoder, 12Mbps, VFR. Won't hold up well through a second lossy encode. You can learn a lot by searching and reading posts on this forum.