Spirit Theme: In Customization Screen of UpFornt, Anytime a background is changed it gets blurry

Hi Support,

I am trying to put in a background image and since this isn't happening on any of the sites I've been working on to date and I can't replicate it on any of th eother upfront sites I have built or manage, here is my question.

When I go into the customization area of Upfront I am trying to switch out the background image. However, when I do I can't get an image to populate because it blurrs out.

I'm attaching a screen shot for you as well as a short video.

If you need to take a closer look at this issue, support access is granted.