Dell - Dell 34 Curved Gaming Monitor – S3422DWG
That is a 34", 3440x1440 pixel monitor with one DisplayPort v1.2 input and two HDMI v2.0 inputs.
The DisplayPort input supports a maximum refresh rate of 144 Hz. The HDMI inputs support a maximum refresh rate of 100 Hz. Your M2 MacBook Air supports a refresh rate of 60 Hz.
3440x1440 pixels with a diagonal of 34" works out to about 109.7 PPI – almost the same pixel density as that of a non-Retina 27" 2560x1440 pixel monitor. Given this, you would presumably want to select "3440x1440" in Displays Settings, rather than any Retina scaling mode.
How are you connecting the M2 MacBook Air to the monitor? Please identify every cable, hub/dock, or adapter in the path from the computer to the monitor.