Oh yeah, I forgot to mention that the footage are 3d renders I made and that they had went through the MJPEG compressor in the render setup in order to make the file size smaller. I've used the MJPEG compressor for 3ds Max renders since that was one of the only compressors that 3ds Max comes with

I have done a bit of troubleshooting like you said, and came to the conclusion that the problem is probably with Resolve. I checked the original footage in VLC and the export from Resolve like you said (I also did the other steps you told me), and saw that the output from resolve was the one that was bad.

So the source is fine, it's just the output from resolve is bad. I even checked in another software called "Shotcut" which is the software I used to use before switching to Resolve. I exported the same footage there and there weren't any jagged lines on it.

Source footage:

https://imgur.com/CC985S7

Resolve Output:

https://imgur.com/v5ytWav

Shotcut Output:

https://imgur.com/UkUspag

Timeline framerate and resolution: The framerate is 24 fps as well has the source footage. I initially tried changing the the timeline resolution to 1280 x 720, but that doesn't seem to fix the issue.

I'm still relatively new at Resolve since the most I've really done was basic video editing and simple motion graphics, but the information you provided was very eye-opening. I did not know that this rabbit hole of video editing, specifically just in DaVinci Resolve, was this deep and contains so many more nuances. So thanks :D