I have the same issue. The new version can't be used for taking hand written notes 😞
The image quality sucks. I can't read my own notes.
The response from the pen is sluggish. It's a delay and there are drop-outs (lines discontinued).
The tracking of the pen movement is terrible. The app doesn't follow the finer details of the pen movement.
iOS 14, iPad Pro 12.9" (3rd gen)