I think I figured it out. There are 20 layers (I counted) stacked on top of each other. The variables were set to remove/show a layer when the slider is at a certain point on its track.
It's actually 20 states but the layers idea works perfectly well.
The blur effect was done in PPT, just adding 5% blur each time and saving each version before creating new states in Storyline and changing the picture within the state.
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