I just have my 360 set on Automatic and leave the 360 box take care of the scaling.
You can set it to 1080i or 1080p and leave your TV do all the upscaling instead, but remember to switch the 360 to either Automatic or 4K if you are wanting to watch say BT Sport Ultimate or the Virgin Ultra HD channel as for some reason my TV doesn't seem to upscale those to 4K
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