Recently when I import videos to Sony Vegas, the video quality becomes pixelated. I record the content with Bandicam and when I replay the original MP4 it runs perfectly and flawlessly. Immediately when I put it onto Sony Vegas to edit, it becomes pixelated. I can even see this pixelation issue in preview so I don't think it's a rendering problem. This problem even happens if I match video properties on startup.
Here is a video before the pixelation problem. Just skip to the middle or skip around if you'd like:
Here is a video when I first noticed the pixelation problem:
I have uninstalled and reinstalled Sony Vegas but it didn't work... any help would be highly appreciated! Please feel free to mention any video editing alternatives as well if nothing works.