Has anyone else seen this where a Meraki camera when lights get turned on gets like this?
Nothing is different as far as configurations and when I did reboot the port the camera was plugged into the image then corrected itself and looks like the image below. Is there something that causes this?
Yes, do call this into Support, at least to review your aperture setting and night mode lux settings, as well as your firmware version (latest is 3.2) to see if any of those "general stability/performance improvements" might apply. I've also seen a case where the lens was tilted beyond (forced slightly past) the gimble lock and obstructed the IR sensor, but if that was the case here, you'd likely be stuck in night mode, and that image you posted still has some color and isn't B&W. Have you messed with the aperture setting? Try setting it to maximum, then minimum, then back to your regular setting and turn the lights on and off with each of those settings. Share any interesting results with Support.