Its not blurred wallpaper, it applied two wallpapers, one for lock screen and other for home screen.
To set Wallpaper(single wallpaper for both screens):
Open wallpaper app, and select any wallpaper, and select this option set as Home screen and Lock screen OR Set Both(option in Google wallpaper app) .
Press and hold home screen, the screen will shows three options, Wallpaper, Widgets and Settings(home screen). Tap on wallpaper, and select any wallpaper, the select set as HOME screen and Lock screen OR Both as options mentioned above.