This ALWAYS happens to me. It just means that person who is blurry is someone who you haven't really figured out yet or he/she is someone who gives you emotional and/or physical pain and your brain is trying to black out that persons face due to trauma.
It can also mean this might be someone you might meet and have a healthy relationship together. Its hard to say at times but in my dreams there is usualy only ONE person who is blurry and a group of people ( I know) are pointing at him/her. This can mean that you have witnessed something you werent supposed to see or you just participated with people who were bullying someone.
Hope this helps