Is there any way I could fix or mitigate the blur on applications using XWayland caused by fractional scaling?

Yes it’s time consuming but that’s the deal. Either you are spending your own time to figure it out or you are asking someone else to spend their spare time for you. Also please note that “noob-friendly” does not mean there will be no bugs or that everything will work as perfectly as every user expects all the time.

A setting for “Apply scaling themselves” will only work with applications that explicitly support that. Legacy X11 applications that don’t know how to scale will still have blurring or will have the wrong scale. Also I am not sure how much you may have searched for the word “XWayland” but I have seen many discussions about this, for example see this thread for a more in depth explanation of what is happening here: Full explanation of current HiDPI (fractional and integer) scaling support in Wayland