I know this doesn't answer your specific question about compression settings, but this is the workaround:Apologies if this has already been asked, but is there any way to change the compression settings? My source image is pristine, but it's coming out highly pixelated.
1) Edit your image to be a 256x256 JPG (I use Paint's "resize" function for this, selecting the "pixels" option).
2) Open up the GUI and ensure the check-box for "Disable Image Conversion" is ticked. This must be done before selecting the image in "Icon Path".
Then proceed as normal!
I'm still very new to this. I hacked my launch Switch last week after getting the new OLED model. I've had loads of fun making forwarders with this tool this past week and I want to offer my thanks to @EddCase , @mpham , @Meliodas2255 , and @shadow256 for all the work they've put into this tool! Thanks also to all the commenters in this thread who have offered support and guidance to others, which I have been able to read to get answers to things I was struggling with.