I've played with the in-camera upscaling as I feel like I was probably the only person on earth who used the IBIS-operated high resolution mode on the R5, and I've found that it adds detail that's not present in the original scene (even on the RF 85 1.2L). As with most AI-driven technology, you're not actually adding anything real; it's just guessing at best, and the results honestly look horrid to my eyes. The sensor shift tech was great - I've used it a few times in an Olympus body to produce high resolution raw files and it does the job quite nicely as long as the scene is still.
In terms of "sensor flare", I see this issue on the R1 with modern RF lenses including the RF 85L, 28-70 f/2, and even the RF 35 VCM. And sensor bloom where you get vertical flaring with mechanical shutter modes - which wasn't present on the 1DX II - is present on all RF bodies to date including the R1, R3 and R5 II (but oddly not on the 1DX III).
Back on the digital correction argument - Sigma just released a new 35mm f/1.4 DC DN II ART lens. This thing is almost perfect in terms of geometry, sharpness, CA control, is about the same size and is lighter than the 35L VCM. I would pay the same price as the Canon RF 35L VCM for that Sigma lens if there were an RF version. And you bet it performs better in terms of CA, sharpness etc than the RF 35L VCM.
I've said this before - if the RF VCM lenses were geometrically correct, I would have bought everything below the 50 (and probably the 50 as well - the 50 is however, geometrically appropriate). I actually cancelled my first-batch-in-the-country RF 35L pre-order after seeing the reviews, and affirmed my decision with an evaluation loan - but my EF II developed an issue that CPS were struggling to repair, so they offered me the replacement of either the EF II or the RF brand new - I should have gone for the EF, but I figured the increased contrast and size on the RF will be more practical in reality (but my photos are just not up to the same level of quality).
Perhaps there is a compromise on optical performance made to facilitate the use of the VCM AF system, or perhaps to allow for more economical repair or more resilient build quality to stand up to the rigours of professional use (something the Sony 35 GM absolutely fails at).