I think it is a glitch. I noticed this as well. When it does not look blurred, it is so when stopped and when it is moving. However when I notice that little blur, it's that way whether stopped or if the needle is moving.I looked at some revving videos and it doesn’t seem to be there when engine is being revved. I have no idea what it is. I don’t think I have ever seen it.
Maybe it’s a 2022+ thing. Added visual effect.