I think the issue is explained by the first four lines of the EXIF information:

Exposure Time 1/2000
F Number 5.60
Exposure Program Program AE
ISO 3,200 Sensitivity Type

For this particular photo you used the P, or Program, mode of your camera.
The actual behaviour varies between cameras, but the baseline is that you let the camera decide what shutter speed (exposure time), aperture (F number) and sensor sensitivity (ISO) to use to get a properly exposed photo (see this previous question on their relation to each other).

The camera chose to use a very short exposure time, which required a higher sensor sensitivity (an ISO of 3200). A higher ISO often correlates to more noise in the photo, which the camera tries to correct with noise reduction technology.

As your camera is quite old, the sensor is not very developed, high ISO results in relatively high noise, which in turn requires a lot of correction.

This correction is probably causing the "really poor quality".
I don't think this is a sign of camera failure, just a sub-optimal choice of exposure settings.

To prevent this in the future try to limit the maximum ISO the camera can choose, especially when you know you will be shooting in broad daylight.
The camera will then choose a longer exposure time, requiring a lower ISO and less noise reduction.