I have basically zero issues with fractional scaling with Gnome on Wayland, I thing you probably have something configured wrong.
Here’s a screenshot of how a few programs look for me with 125% scaling on my original framework display. The only thing slightly blurry is spotify but it’s not enough to be noticeable in normal use. 1000008665
Edit: Looks like lemmy actually compressed my screenshot a fair bit but I think you can still tell that things are scaling properly