If it's set to anything else, you may experience blurry images The problem is that the default paste option has been changed from bitmap to Windows (Metafile). This is why it's important to have the DPI value for all images in your email signature set to 96 DPI. By default, Outlook wants all images to be at 96 DPI. Outlook uses the image's DPI value to scale the image.
Home Outlook images blurry How to Fix Blurry, Pixelated or Fuzzy Email Signature Image