To prevent a Variational Autoencoder (VAE) from generating overly simplistic outputs, use a higher-capacity latent space, apply a stronger decoder, fine-tune the β-VAE loss (KL weight), and enhance training diversity with richer datasets.
Here is the code snippet you can refer to:

In the above code we are using the following key approaches:
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Increased Latent Space (latent_dim=10)
- Allows the model to encode more meaningful variations.
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Enhanced Decoder (intermediate_dim=128)
- Strengthens generative capacity, preventing blurry or simplistic outputs.
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Adjusted KL Loss Weight (kl_weight=0.1)
- Balances regularization and reconstruction, avoiding excessive constraint on the latent space.
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Training with Normalized Data (x_train / 255.0)
- Ensures stable optimization and better reconstruction fidelity.
Hence, by increasing latent space, strengthening the decoder, adjusting KL weight, and using well-preprocessed data, VAE can generate richer and more complex outputs while maintaining meaningful structure.