Iphone Camera focus but the edges of the camera are blurry on the screen?

I am having the same issue, and it just appeared within the last few days or weeks. This has to be a new bug, or a new issue with a recent update. Gus' official Apple response is not sufficient. I have the same problem: randomly sometime in the last few days, my iPhone 7 regular (NOT plus) randomly started acting like it has the new portrait, depth of focus setting. Now when I take a picture using the stock camera app of a flat surface, only the center is in focus. Everything else has a gentle blur, just like it's simulating the bokeh effect or something. If I put a word document paper on a desk and take a picture from above, the entire 8x11 document is NOT in focus as it should be and used to be. Now, only one point on the page is in focus and everything else is blurred. And I should state that I do NOT have the option to select "portrait" mode officially, it's just doing something similar on its own now. Really, really weird... Apple, what the heck is up?