Points being reduced to grid upon becoming a Feature Class

I have multiple points in a state plane that were collected and are currently being stored in Lat/Long. When I display XY data from the table, it looks great. I then have a shapefile of those points, which still looks exactly like they were collected. Only upon the points entering the feature class do they end up reducing to a grid, and the points become assigned to their nearest point rather than the location in the table.

This happens no matter which way I try and insert the points into a GDB.

Is there a setting I have turned on or something?

I’ve turned plenty of tables into feature classes with no issues.

I’ve attached an image below showing the original shapefile and what it is converted into upon becoming a feature class in the GDB.