In the first picture, I see a stretched image.
On the second picture I see a normal non-deformed MS-DOS screen. I suppose it have black bars all around.
On both characters are pixelated, which is normal for 80 columns mode.
As DISPLAY.SYS initialize the LCD screen I think it will use all the pixels of the panel to display the screen, meaning stretching in your case. By default DISPLAY.SYS scan the hardware and auto-select the correct graphic mode. You should remove the EGA parameter as forcing a graphic mode is in the case DISPLAY.SYS is not able to select the correct mode, but you can replace it with LCD if you want too.

The Toshibas have a screen stretch mode in bios. Check video settings in bios. Press escape and F1 on boot

kleung21 wrote on 2022-03-06, 05:35:

The Toshibas have a screen stretch mode in bios. Check video settings in bios. Press escape and F1 on boot

This .

The "scaling/stretching" on some of those older laptop LCD screens really sucks by today's standards (by the very late 90s it had gotten much better already).

So in all likelihood, OP's options are

a) live with it
b) disable scaling/stretching in BIOS/keystroke combination/Toshiba utility (whichever apply) and live with black borders around image and maybe 1:1 pixel mapping or something approaching it (320x200 line doubled to 640x400 by the VGA card not being square pixeled, I doubt it will be displayed properly)
c) use an external display

I don't know that laptop, but generally speaking, I can think of a reason behind this issue.

VGA text-mode traditionally uses a resolution that equals 740x400 pels @70Hz (80x25; 9x16 char res).
That's what's normally used when booting DOS, also.

However, modern 21th century BIOSes nolonger support true text-mode and/or render text in 640x480 graphics mode all the time.

That way, the BIOS logo (Energy Star etc) can be displayed.

Especially laptops do use 640x480 by default (or 800x600?), it seems.

However, that's not necessarily the culprit here.
In the 90s, most of us used CRT monitors that always were 4:3 (or 5:4),
so 720x400 looked normal, not like a wide-screen mode.

And older 286/386/486 laptops with their integrated screens had been specially prepared (custom character set etc) to always display text-mode correctly.
Well, most of the time.

https://en.wikipedia.org/wiki/VGA_text_mode

Edit: What I mean to say: The DOS drivers likely trigger a certain video mode (EGA?) inadvertently that causes that stretched look.

Edit: Just checked my Pentium 133 + S3 ViRGE.
Reported resolution is 640x350 - EGA's standard resolution.
70Hz refresh is fine, since it's an VGA compatible card.
EnergyStar logo in the upper right.

do you need Display.sys? I have several Toshibas from the same era and I don’t run that on any of them.

I would disable the stretch in BIOS and tryVEXP since it’s a Chips and Tech. Scaling with VEXP is much better