The other thing that leads me to strongly suspect a software issue rather than hardware, is that hardware quality loss should be entirely independent of the format. But it's not - HEIC photos at 48MP remain reasonably clear in almost all circumstances, whereas ProRAW in 48MP can be sharp, can be slushy, it's a gamble.
But if it was hardware, it would affect all formats equally. A dodgy lens or sensor wouldn't be sharp on some formats and dodgy on others, and HEIC can't invent details that the sensor didn't capture in the first place.
So it just makes logical sense to me that the issue remains a dodgy ProRAW pipeline.
For just another example - here's two identical 1:1 pixel crops from 48MP 4x Telephoto shots taken moments apart with exactly the same lighting conditions. Literally the only change is switching from HEIC to ProRAW. Yes, HEIC is oversharpened and too punchy - but 'oversharpened' isn't the same as 'magically able to conjure up detail that the sensor never captured' - stuff like the branches you can see on the pine trees on the island.
HEIC
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ProRAW
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