MS Teams virtual background effects blending with real background

I've been using MS Teams since COVID hit and this week I've had my first issue with virtual backgrounds.  No different settings than what I am used to.  I'm pretty sure my MS Teams was just running off default settings. 

When I'm in a meeting, I can set the background to "blur" which works properly but I would rather use a virtual background.  However, when I do this now it works but there are some items in my room that also appear in the background - it's mixing the virtual and real backgrounds.  For example, my bed and a picture that is on my wall in the background is visible with the space or office setting virtual background.

I tried restarting Teams, uninstall and reinstall, closing and opening, signing out and in.  Is there any setting particular to this?  Or is this just a matter of this won't work for me anymore?  Is it the laptop getting older?  My colleagues still have working Teams backgrounds.

Thanks!! any help is appreciated.