Yeah, game is low poly and low def by design, you could try disabling chromatic abbreration in the settings to see if that helps.

Yeh I did that... its like its not blurry if I pan camera and see it up close. At a distance it doesn't look blurry. Then as I walk to it, a circlular space around my player is blurry. So odd. I played 30 ish hours of this last year and I never noticed this.

It's annoying cause I have ocd and end up fixating on it. Haha.

Post some pics. Maybe you're experiencing something that we're not.

The effect you're looking for is called "Depth of Field" I believe. Disable that in the graphics settings and the blurring will stop. What this effect does is some kind of simulated camera lense where the focus is where your mouse cursor is. So if your cursor is looking at the distance, the near field gets blurry. If you are looking at the near field, then the distance gets blurry.

At first I wasn't a big fan of this effect, and normally anything "cinematic" is a no in my books (especially chromatic aberration), but somehow this effect grew on me. Its pretty nice when you know what it does and how to focus the camera.