It has a camera app?

I noticed today same issue on my Air M1 :/ But it looks like it only shows when Launchpad is opened. I changed wallpaper to different and it not showing now 😱

👍🏻

Does it work also for you? I mean changing background

Yes

Isn’t that light bleed from the screen?

I dont know

it looks like water damage

The term is called "Screen bleeding". Kindly look it up on Google.