None of his settings had been changed from the default Streamlabs settings.
This happened mid stream
Currently it will run fine and then randomly glitch out like this for a few moments, then go back to normal
When he uses streamlabs to record to his drive, this does not happen at all.
I tried clearing the cache for streamlabs
I also completely reinstalled streamlabs
Streamlabs "preview" of the stream does not show this happening either.
Any ideas why this suddenly started happening, and how I can remedy it for him?
Best answer by Castorr91
Typically pixelated streams is due to the lack of bitrate. Depending on your upload speed you can try to increase it, it also depends on video resolution and fps of the stream.
For this particular issue I would try to change encoder completely under settings -> output. I would guess that he's using different encoders for streaming vs recording.