I did finally get a response. I was in a hurry, because I only have Evenote installed for all note taking activities. So, not being able to use a feature I use regularly is disruptive to my routine. I should mention this was my first use of annotation of a pdf in Evernote.
I am using Windows 10. I am annotating in the desktop version, not Skitch. I have already reinstalled Evernote without seeing any difference. Image files are not blurry during annotation only pdf files are (big or small). I thought it might be due to a slow storage, but installing in ssd did not result in any improvement. I can only guess there is some compatibility issue with the annotation window and dpi scaling due to the annotation window being slow with pdf files. In Evernote window, in Options under the Note tab, the font option is small and the font label is only half visible. I think this shows dpi scaling problem, but the text is not blurry anywhere else (in note).
I think(guessing) the annotation window treats a pdf file like an album and treats each page as an image since you cannot edit the text in pdf. This changing of a pdf file into picture format (if it is that) could be the reason the annotation window makes the text blurry. But at this time, this is only my guess, since I do not know if other users have had this problem. Not to mention the support person could not recreate the problem on his/her end.
I have attached a link that shows the issue. I hope someone can help. I fear this could be a problem only on my end. https://drive.google.com/folderview?id=0B5M-zYUEBBj9U3FhQXN1SGZFNWM&usp=sharing
Cheers!