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Since you posted a screencap, we can't see what your monitor displays; but even on an 8-bit display like my ZR24w, there is minimal banding in BC2. It's probably a limitation of the game engine and the way it blends screen space effects.
Programs like Photoshop render smooth gradients using dithering in 8-bit per channel images; it looks like BC2 and MS didn't utilize this .