Holy mom bombs!
It looks like a glitch with the depth of field filter showing up in places where it shouldn't.
I had an issue like that show up whenever I fought a pair of Red Dragons. When they first appeared they'd be all blurry, and then the filter would blink away.
Hopefully the actual Pro patch should fix this.
This is the actual pro patch. That's why deleting the update makes the game look like it does on a regular ps4.