Yes it doesn’t. Check these discussions (they are pretty recent):

  • https://www.reddit.com/r/MacOS/comments/rxnyj1/text_looks_disgusting_on_an_external_1440p/?rdt=39832
  • https://forums.macrumors.com/threads/macbook-air-m2-with-27-1440p-monitor-blurry-text.2381858/

I was so surprised when I know this, because I just bought a Dell 2K 27in monitor for my old laptop. It was working great. Then suddently it does not work with my new laptop anymore. The 1440p resolution setting makes everything too small and not smooth, while the 720p is smooth but zooms everything in to an absurd level. Every resolution in between makes the text look super blurry. Luckily, Dell allows 30 days to return it!