Fluid simulation turns blocky after editing

I seem to have a common problem when using fluid sim and I’m not sure how to solve it. Whenever I edit the fluid or domain of the fluid sim, the water turns all blocky. Turning up the res doesn’t seem to work. It is also set to smooth.

I’m not sure what exactly happens to make it like this. Before I edit them, the fluid is usually fine, but once they are changed and I re-bake it, it turns all cube-ish and pixely.

Heres my blend file if it helps: fluidtest2.blend (927 KB)

The the domain fluid settings change the viewport display from ‘Preview’ to ‘Final’

You should also apply any scale of your domain and fluid may have before baking (Ctrl+A)