Blurry camera screen in brand new MacBook Pro M1 13''

Hi. My brand new MacBook Pro M1 13'' has a blurry camera. I tried the camera with the FaceTime as well as the Photo Booth. The image quality looks like a camera from 2005. And I am only 10 minutes into the brand new laptop. My MacBook Air 2017 had 10x much better camera quality. Has anyone faced similar problem? Thanks.

Anup