Macbook in-built display shows closed applications translucently
I updgraded my Macbook pro to Big Sur (11.5.2) a couple of weeks back. I don't know if that's what caused this issue, since last week the in-built display (external display is fine) has become translucent and shows apps that I have already closed. As you can see in the attached photo, I have the Terminal app open but I can still see a Safari window of the Wikipedia homepage as well other apps I had already closed.
Apple Support suggested booting in Safe Mode, Resetting NVRAM and Resetting SMC - none of this resolved the issue.
It looks to me like a software issue and the display's memory has probably not been flushed out completely when switching windows or closing apps. Any advice on how I can fix this? Thanks.