DIAGNOSIS The camera's IR cut filter is stuck in the "day" position, so the IR LEDs are blasting light directly back into the lens.
FIX Power cycle the camera. Unplug it for 30 seconds, then plug it back in. Listen for a faint click (the filter moving) as it boots. This often resolves it.
IF THAT DIDN'T WORK The filter mechanism might be physically obstructed by debris or has failed. Try gently tapping the camera body to dislodge any stuck parts. A factory reset (hold setup button 10+ seconds) can sometimes re-initialize the sensor.
HEADS UP This is a known hardware flaw in some v3 units. If under warranty, contact Wyze. There's no software setting to fix a mechanical failure.