Layer issue

Happy New Year Heroes!

I'm stumped with this, as I am building a course from scratch (normally might just re-use things I have created before).

So I have a normal, everyday slide. I add a new layer, and what I see on the base layer has some kind of transparent square over the whole screen.

Is it the dimming option on the bottom right? No. I have switched it on and off, can see the difference, but still the same.

On both the base layer and the new layer, I have also right clicked on this slide on the scene, checked the layout, Reset Slide and also Format Background. On the layer settings, is it Hide Other Slide Layers? Nope. I can't find it. Nada. Nothing. Zilch. I'm pretty sure this is super simple. What is it that I am missing?

Layer issue

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