It's all becoming clear...
A handful of Nintendo patents and trademarks have popped up recently, and the latest patent filed by the Big N has some interesting ties to low and high-res images.
This patent in particular aims to convert lower-res images to higher-res images through machine learning. Now this wouldn’t be able to magically convert images from blurry to pixel-perfect, but it would certainly go a long way in upscaling lesser-quality images to something a bit more presentable.
There are quite a few Switch games that suffer from a bit of blurriness, especially in handheld mode. Having something like this upscaling would be nice, and there’s no doubt developers could benefit from it. That said, just like all patents from Nintendo, you never know if this is something Nintendo is simply looking to protect, or actively working on applying to their games.