Why does iPhone 13 Pro Max Camera blur/discolor when something comes into focus???

Ignore my messy room/nails. Any time I bring something into focus the camera automatically switches to a blurry and grainy image, like it’s trying to automatically do something. It looks terrible. I’ve turned night focus off, Live Photo on and off, toggled with settings. The second I remove what I’m trying to take a picture of from in front of the screen the color and screen go back to sharp normal. First picture is how it appears for a second and second picture is what it turns into. It’s glitchy and it looks really bad the way it comes into this blurry focus that won’t go away until I move my hand from view. It does this with everything.