RSDK rendering gets blurry after disconnecting from a multiplayer session (via timeout or finishing the match(?))

[LittlePlanetCD]

Steps to reproduce this issue:

1. Start a multiplayer VS match, easiest would be to host a local game with two of the same client.

2. get into a level

3. close one of the clients, your main one should get kicked out with a menu prompt.

4. play the game from any save or use the dev menu to load a stage. the game should have an odd blur over the game as you're playing.

this blur does not appear in the hardware based menus, only in the actual game.