That looks pretty reflective. Is it plastic or aluminum?
The wash of blue light may just be reflection, but it can indicate a focus issue. Speeds in mm/minute and % Power are important when attempting to engrave - especially on new or unfamiliar materials.
This may be worth review:
Put a piece of masking tape on your workpiece and confirm your focal distance.
If you’re so inclined, please share some info about the material you’re engraving your speed in mm/minute and % power applied.