grub2 - Blurry tty with nvidia drivers

I recently upgraded my computer, and after installing the latest Ubuntu there, have found an issue. I'm using the latest nvidia drivers (nvidia-346) from xorg-edgers ppa, along with a GTX 970 gpu.

Grub automatically worked in high, if smaller than native resolution, but after booting, the tty I got by pressing ctrl-alt-F1-6 was very blurry, as well as the command line output that shows on screen when rebooting/shutting down (the text during boot looks fine).

I used some guides available around here and changed grub resolution to native 1920x1080, and the tty became even more blurry, to the point of being completely unreadable.

How can I fix this? Is this a problem with the nvidia driver?

There were some similar posts around, but none that I found seemed quite on the spot, and none helped, hence the question.

Here is the content of my /etc/default/grub:

# If you change this file, run 'update-grub' afterwards to update
# /boot/grub/grub.cfg.
# For full documentation of the options in this file, see:
#   info -f grub -n 'Simple configuration'


GRUB_DEFAULT=0
#GRUB_HIDDEN_TIMEOUT=0
GRUB_HIDDEN_TIMEOUT_QUIET=true
GRUB_TIMEOUT=10
GRUB_DISTRIBUTOR=`lsb_release -i -s 2> /dev/null || echo Debian`
#GRUB_CMDLINE_LINUX_DEFAULT="nomodeset vga=838 quiet splash"
GRUB_CMDLINE_LINUX_DEFAULT="quiet splash"
GRUB_CMDLINE_LINUX=""


# Uncomment to enable BadRAM filtering, modify to suit your needs
# This works with Linux (no patch required) and with any kernel that obtains
# the memory map information from GRUB (GNU Mach, kernel of FreeBSD ...)
#GRUB_BADRAM="0x01234567,0xfefefefe,0x89abcdef,0xefefefef"

# Uncomment to disable graphical terminal (grub-pc only)
#GRUB_TERMINAL=console

# The resolution used on graphical terminal
# note that you can use only modes which your graphic card supports via VBE

# you can see them in real GRUB with the command `vbeinfo'
GRUB_GFXMODE=1920x1080

#GRUB_GFXPAYLOAD_LINUX=keep

# Uncomment if you don't want GRUB to pass "root=UUID=xxx" parameter to Linux
#GRUB_DISABLE_LINUX_UUID=true

# Uncomment to disable generation of recovery mode menu entries
#GRUB_DISABLE_RECOVERY="true"


# Uncomment to get a beep at grub start
#GRUB_INIT_TUNE="480 440 1"

And the relevant pictures (current grub resolution and the way tty look like):

I'm not entirely sure about the reasons, but currently (with the fully updated packages), the issue is gone. It was most likely a bug in one of the packages (perhaps some incompatibility related to the third party drivers). If anyone is still having the problem, just try updating all the packages.