I contacted Intel support, they were awfully slow when it comes to replying, not much they said was all that helpful.
However, I did by chance discover that the old Intel HD Graphics software is still installed, but hidden from the Start Menu, Search and the list of installed programs. It appears in my question I mentioned that this setting was missing in the old software, I don't recall exactly what the situation was there, but it's possible the option is hidden in this hidden software unless you are currently casting...
If you right click the desktop and open the Intel HD Graphics settings from there, it still uses the old software, which is unexpected, and from there you can change the "Wireless Display Scale" setting to a more reasonable 100%. Most other methods of finding and opening the old HD Graphics software no longer work and you can bet the setting will not be making its way to the new software, so here's to hoping when the old software is completely removed the driver removes the feature!
In the situation that the old software is missing from your desktop context menu, like in @joerno's case, there are two other solutions you can try...
- Look for the old driver software, it may be installed in a directory similar to this...
C:\Windows\System32\DriverStore\FileRepository\igdlh64.inf_amd64_df093c7b85af5a68\Gfxv4_0.exe
- Try completely removing the Intel Driver using the DDU tool and install or roll back to a legacy version of the driver, and disable automatic driver updates while you're at it.
Now there's only one issue left, it's off center in the y axis by ~6 pixels! Way to go, Intel...