You may need to focus your HUE camera by turning the ring around the lens.
If this doesn’t help, the image on the right-hand side of your HUE Animation window can sometimes appear blurry because of a feature called onion-skinning. This is a tool to help animators to see their props as they were positioned in the previous frame, in order to align everything appropriately prior to capturing the next frame.
The afterimage of the previous frame is partially transparent to let you “see” both images at the same time.
The onion-skinning button is located just under the right-hand video window, close to the capture button. You can turn onion-skinning on and off and select a different onion-skinned frame by using the arrow control buttons nearby.