Because restarting and a prolonged shutdown have not fixed the blurry screen, use this sequence to determine whether the problem is hardware or software.
Disconnect the external monitor and other peripherals, then start the Mac and check the Apple logo and login screen.
Note whether the built-in display is already blurry or becomes blurry only after macOS loads.
Next, start macOS Recovery and examine the built-in display there.
If it is still blurry in Recovery, the problem is less likely to be caused by an application or something loaded during a normal macOS session.
If it is clear in Recovery but blurry during normal use, that points more toward macOS, software, or display configuration. Apple — How to start up from macOS Recovery
Next, run Apple Diagnostics. On an Apple-silicon Mac, shut down, hold the power button until the startup options appear, then press Command-D. In Tahoe 26 or later, select the built-in display diagnostic if available. Record any reference code. Apple — How to use Apple Diagnostics
If Diagnostics reports a display-related hardware problem or provides a relevant reference code, keep the code and provide it to Apple or the repair provider. If Diagnostics reports no hardware problem, continue with the software checks.
Start the Mac in Safe Mode. If the display becomes clear in Safe Mode but is blurry during a normal startup, software loaded during normal startup may be involved.
If the problem continues, use the external monitor to check System Settings >> Displays and select Default resolution for the built-in display.
Also check System Settings >> Accessibility >> Display for settings that could affect the image.
If the screen remains blurry, return to macOS Recovery, open Disk Utility >> First Aid, and check the startup disk.
If that does not resolve the problem, back up your important files and consider reinstalling macOS from Recovery. Apple — Repair a Mac disk with Disk Utility · Apple — Reinstall macOS