Blurry & Grainy camera on brand new MacBook Pro 2020?

Is anyone having this issue? I compared my brand new 2020 Mackbook Pro camera to my 2017 MacBook Air. The difference is astonishing! The 2020 MacBook Pro camera is incredibly blurry and grainy. Even the senior tech advisor at Apple was shocked after I shared my screens.

We already tried new user and system refresh.

Apple is still working on figuring this out. I having a feeling it’s a software issue, not hardware.