The image isn't as bad as you suggested.
The section of the image you cropped is overexposed, so it looks a little hazy.
But after adjusting the exposure, it shows plenty of detail considering that you are looking at <2% of the image.
After...
Can you upload the original image file to Google Drive, Dropbox or similar and post a link so we can check tha actual image rather than a cropped and shrunken version here?
While in Europe the strobe is not mandatory, if I were in the US I wouldn't put a strobe on the drone, that's for sure. As if the lights on the drone wouldn't be enough to see it at 3Km… the M3 with all the lights on is like a flying Christmas...
Arc v5 is what I use.
Here is what the FAA says about night flights
§ 107.29 Operation at night.
(a) Except as provided in paragraph (d) of this section, no person may operate a small unmanned aircraft system at night unless—
(1) The remote...