Hey caseygross - from the screenshot this looks most likely like low-light/high-gain noise rather than a device defect. The app is showing ISO 800, and increasing ISO/sensitivity adds gain, which makes noise more visible. For better image quality, try adding more light first, then keep ISO low, for example 100-200, and increase exposure only as much as your motion-blur requirements allow.
Also try tuning the ISP controls: reduce sharpness, and experiment with luma/chroma denoise. A useful starting point is sharpness 0, chroma denoise 4, and then test luma denoise values for your scene. Please also compare using an actual captured frame from the app, not only a browser screenshot/zoomed visualizer view, since browser scaling can make artifacts look worse.
Useful docs:
Best,
Oskar