How Microsoft word reduces picture quality and how to fix it

By default Microsoft Word will compress and resize pictures you add to a document. If you later try to save the same picture from the Word document, you will be left with a compressed and ugly version of the picture. If you haven’t kept the original picture file you will never get the original back!

The fix is very easy:
In Word just go to File - Options - Advanced and check do not compress images in file and set the default resolution to high fidelity. Make sure to do this for new documents as well by clicking on the drop down menu and select “All new Documents“.