Kiyo Lens "Seeing" Kiyo's Light

This is an out of the box new Kiyo issue, but we've had the Kiyo for a few months (it's our 10th) and we're out of the Amazon return window.
When I turn the light on, the camera picks up the light on the right hand side. It shows as a blue circle as though the lens was picking up the light ring. Lower the intensity, the issue becomes less noticeable. Nothing seems loose, but it's like the lens was mounted too far out.
See the right hand side of picture, showing on black. The monitor screen is reflective, but the back of the mousepad is not.
Updating firmware did not solve the issue.