This IS an urban legend which deserves to die.
VHS wasn't of discernible worse picture quality but provided much better usability at the same time.
Re:Atom Was Archived Today
by NoGravitas on Friday December 16, 2022 @10:55AM
(#34015973)
VHS was of marginally worse picture quality, but for that small trade-off you got the huge benefit of being able to record a feature-length movie on one tape.
https://en.m.wikipedia.org/wiki/VHS
https://en.m.wikipedia.org/wiki/Betamax