This video compares the Original Mode to the Adjusted Mode of Metal Gear Solid 2: Sons of Liberty (Master Collection).
The Original Mode, which is the only one available at the launch of the game, features an internal resolution of 720p and low-resolution pre-rendered cut scenes.
The newer Adjusted Mode, which came out in the patch 2.0 update, increased the internal resolution to 1080p while also applying AI upscaling to the pre-rendered cut scenes.
You can check out the video comparison of both modes below:
Overall, the graphics appear to be sharper in Adjusted Mode. You can more easily tell by looking at distance objects such as the cargo ship during the wide view.