Canon EOS Rebel SL2, pictures have started coming out very grainy/blurry.
I don't get why, this camera and lenses used to take crisp, beautiful pictures. I'm trying different lenses, I have an EFS 15-55mm and an EF 85mm. Auto focus is on for all lenses. Stabilizer off. File quality is L.
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I think your biggest issue with the indoor shot is low light and the corresponding high ISO of 25600.
The outdoor shot of your home is great.
Here are two comparisons for noise evaluation for the SL3; one version newer thatn your camera.
ISO 100 (same as your outdoor shot)
ISO 25600 (same as your indoor shot)
You can see how grain and loss of detail has developed.
Your indoor image used the Portrait Picture Styel and had High ISO Speed Noise Reduction enabled. Both of those features serve to reduce apparent sharpness.
Left image is with High ISO noise reduction. Middle image is in-camera JPEG with camera processing applied. You can see how noise was reduced, but detail was also reduced.
I say there is nothing wrong with your camera.
Welcome to the forum Channanain.
Can you post a few files that you are unhappy with using DropBox or One Drive so we can look at them?
I don't think the quality setting is the problem, but in any event, changing from L (Large) to M (Medium) is reducing the JPEG quality.
"I've tried all the settings related to light correcting,..."
This is most likely your problem. First right off reset the camera to default settings. In Menus, tools, clear all settings and clear all custom srttings.
Now on a nice sunny day set the SL2 to P mode. One shot, never Ai-servo for this test. ISO 200, WB to daylight. Make sure the lens switch in on AF. Outside take several random shots some with vertical lines in them like trees or fences or buildings, etc. If the shots are all nice and sharp noting is wrong with the camera. If they are not you need to call Canon and set up a service order.
Oh, and make sure you have fully charged known to be good battery and a good, top quality, recently formatted SD card in the SL2.