Blurry wallpaper issue on iPhone

If you want to make your home wallpaper clear again either go to settings and tap wallpaper or press and hold on your Lock Screen. after doing either one, then select the wallpaper you want to edit and select home screen. Tap on the water droplet and see if that helps. If your lock screen is the one that is blurry, restart your iPhone, and if the issue persists, contact apple and see what they say. I hope this helps.

On your iPhone, open the photo you want to use as your wallpaper.

Now, tap the edit slider on the bottom of the photo.

Now tap Crop.

See the box at the top, which is box within a box within a box and tap it.

Look at the bottom row and slide till you see Wallpaper and tap that then Save.

This will resize the photo to be the perfect size for a Wallpaper on your iPhone and when you select the edited version will no longer show blur.

Adjust the camera’s focus and exposure

Before you take a photo, the iPhone camera automatically sets the focus and exposure, and face detection balances the exposure across many faces. If you want to manually adjust the focus and exposure, do the following:

1. Tap the screen to show the automatic focus area and exposure setting.
2. Tap where you want to move the focus area.
3. Next to the focus area, drag  up or down to adjust the exposure.
4. To lock your manual focus and exposure settings for upcoming shots, touch and hold the focus area until you see AE/AF Lock; tap the screen to unlock settings.

If your Photos and Videos are stored in iCloud and you share it before downloading the original then it may appear blurry but it is not.

Your photos and videos are stored on your device in their original, high-resolution version. This means that they use a lot of space on your iPhone, iPad, and iPod touch. With iCloud Photos, you can make more space available on your device and have your entire collection, everywhere you go.

Get started with iCloud Photos:

1. Tap Settings > [your name] > iCloud > Photos.
2. Turn on iCloud Photos.
3. Select Optimize iPhone Storage to save space on your device.
4. 

With Optimize Storage, smaller, space-saving photos and videos are kept on your device while all of your original, full-resolution versions are stored in iCloud. And as long as you have enough space in iCloud, you can store as many photos and videos as you want.

You may try some of these steps, please check after each step...

1. Ensure adequate lighting. Poor lighting can significantly impact eye-tracking performance.  
2. Sometimes assistive touch settings can interfere. Check your assistive touch settings within the accessibility menu.
3. Ensure your screen protector or case isn't obstructing the front-facing camera. See the poic below
   1.