I've been having this issue where when I drag artwork/graphics made in Illustrator from my library then place it in my InDesign. It usually ends up horribly pixelated. I've read a few tutorials on how to fix it through preference options but nothing changes. Most of these tutorials don't even display the same prompt boxes either because I'm using Windows apposed to Mac.
What happens when you place the illustrator file in InDesign?
Did you try changing the display performance to "High Quality Display"(View menu)?
Wow, yeah that just fixed it. Changing it to high quality. Thank you!