Oh I have the answer...Hyundai said they sent out a TSB on this issue (not to consumers of course), which they say is caused by a chemical agent used when cleaning the car. It creates bubbles in the UV coating of the lens, creating that blur effect in low light (when you need the back up camera the most). I have been fighting with them since August of 2021 on this...the same issue does NOT appear to the 2022 model so they clearly found that the issue was big enough to fix. We received the car in this condition but did not notice for months because our back up area is well lit so no fogging issues cropped up...then we found out the issue when we moved and had a low light are in our area, took it in, and then started the fight. Because they sent a TSB they will not cover under warranty, even though no one disclosed the delicacy of the coating when we purchased
The case manager said she has spoken to the dealership and based on that conversation they say you should "only use water to clean the lens." The ridiculousness of that statement is obvious, but Hyundai still refuses to cover under warranty. They are creating Hyundai enemies for a part that would likely be $60 for them to replace properly... beyond idiocy
For reference, we have a 2021 Palisade