Does anyone has green dot issue and water-color effect with 7plus camera?

This is not an issue at all. It is a lense flare, it happens when you take a photo of a sun.

Perfectly normal, nothing to worry about.

Yes the dot is normal, but the watercolor effect is not. This is a problem with many if not all IP7+, and likely 7s too. After experimenting with Lightroom I've found it's not actually a lens or hardware issue, but something in the iOS 10 software. I've noticed it in my iPad Pro 9.7 also. Apparently the iOS is giving the shutter a shorter exposure, 1/15 sec for a JPG file, and a high ISO causing the grainy/watercolor painting like effect. Not cool. Don't both going into an Apple Store anyone, a new one will just be the same as some have already experienced. We need to pressure Apple to just fix the software glitch and give the Camera app more control over shutter speed, ISO, etc.