Oh, you can zoom in on QGIS and see that banding is present in the original data. Not super uncommon. I haven’t had a chance to test it myself yet, but if I remember correctly, if you extract the contours from the original data (you’ll want to play around with this, you want the contour distance to be small enough that you don’t lose any features, but not so fine that it preserves the banding, so ideally you’ll want the distance to be just slightly larger that the largest height difference between any two pixels) then run interpolation on those contours, it’ll produce a raster image without the banding (or with less banding, depending on your export settings). I believe the interpolation mode you want is line Line Density, but I’m not 100% on that. The workflow is similar for increasing the resolution of a heightmap while preserving details, though in that case, you’ll really want to focus on contour distance, and maybe even a little contour smoothing.
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