Digital noise due to compression?


New here, I’m working on a number of clips which come from a 16mm film that has been digitalised in full HD, material from 1943-1944 to mp4. The colours have completely faded.
I can get a good result in two ways, by working on the contrast and brightness, or colour correction, but in both cases some pixel blocks or digital noise appears in the blue sky.
Is there a way to avoid this from happening and still have a good result ?
Thank you very much !


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