Why do change the resolution instead of the scaling?
You pick the “effective resolution“ of the display, but the native screen resolution is always used and the DPI is changed to scale things up or down until they are scaled the same they would be on a monitor of the chosen resolution.
There are a few choices in that list, denoted by “(low resolution)” or something, which set the indicated resolution and leave scaling at 100%. Those look horrific on MacOS but they are options.
I can set my display to 1728x1080. That's HD.
I can also output my Mac to an HD TV, Projector, etc. And I have the notch on my MacBook Pro.
Do you have some other definition of HD that I'm not understanding?