It looks like you are rendering the DEM as a Hillshade which is the part resulting in the pixellating.
I don't know why but when zooming on DEM layers with a Hillshade Style rendering in QGIS, it is made of uniform grey pixels with graduated contour lines as pictured below
a) Raw DEM (Singleband Pseudocolor):

b) Hillshade rendering when zoomed in:

I would recommend you to:
reproject the SRTM DEM to your project CRS:
with Hillshade rendering there is still an unexpected rendering when zoomed in but there are no aliasing effects
use the Processing Toolbox>GDAL>Raster Analysis>Hillshade to create a new Hillshade layer:
By being reprojected there are no aliasing effects and being a native Hillshade layer, each pixel has the actual hillshade value
With that, and depending on what you specifically want to achieve, you shoudl be good