Hello,
Make sure there is no protective film still covering the camera lens and gently clean the lens.
Many built-in laptop webcams have a fixed-focus lens rather than adjustable autofocus. However, if the image is abnormally blurry even when you are sitting at a normal distance from the laptop, the camera module itself may be defective or misaligned.
Since the laptop is only a couple of months old, I would contact the laptop manufacturer and have them check the webcam under warranty rather than continuing to reinstall drivers or Windows. This is typically not a software issue.