what in gods name is going on with the top screen of this 3DS XL?

my workplace got this 3DS XL and its got a very weird issue

i instantly noticed the top screen was weird even when not on, i just assumed the room lighting and where i was standing made it weird but nope, it was in fact weird

i either think its been dropped/damaged or its a bad replacement because the pixels are fuzzy ( the weird fuzzy stuff can be seen in the video, its like that in real life )

and i dont know why but i think for some reason it also made the trees weirdly transparent or something?

the console also tended to randomly shut off, stop charging etc

does anyone know the issue? and why its so funky?