Iphone 11 camera (not Pro) 1x zoom issue

Recently noticed this issue on my iPhone 11 camera - as soon as I zoom to 1x or higher, picture is blurry. Zoom below 1x, and I mean like just below, picture/lens view is fine, looks normal, sharp.

It’s a night and day difference when you go from 1x to 0.9x. Instantly blurry to clear!

I have not dropped the phone and it’s been in a case since purchase in April 2020. Inspecting the lens area physically, I cannot detect any damage or scratches, however this does appear to be more of a camera app/software issue.

I am not 100% sure, because I do not take pics every day, but I did upgrade to 13.5 recently, so I’m wondering if that might be a buggy build or of that ios update triggered the issue. I can definitely state, I did not have this issue a few weeks ago, nor when I first got the phone.

Anyone else having this specific issue? It’s driving me a little nuts!