ProRaw 48 MP or Normal Capture?

I recently got my hands on the new iPhone 16 Pro, and I’m a bit confused about when to use Pro Raw and when not to. I’m especially puzzled about what settings I should keep on or off when taking photos at night. Sometimes, when I zoom in on my photos, I see some pixelation. Any tips or advice you can share would be awesome!

Also, I’m wondering if I should keep Pro Raw format at JPEG XL Lossless or Lossy? Like, which one would give me the best quality photos without much pixelation?