Chosen Solution
My question is. Apple wants to do a factory reset and said it might fix it. I am willing to replace the camera but I want to know if anyone else has experienced this and if they were able to get it fixed.
iPhone 8 Plus’s dual rear camera shares the work of taking pictures from near and far between 2 cameras. One camera will handle the close up shots while the other one handles anything that needs more zoom. If your camera works as soon as you zoom in to 2x it likely means that one of your cameras will need replacing. Doing a factory reset can fix some issues, and it may be worth a try before opening up the phone, but in my experience this seems like a quick camera replacement should solve this issue.