" Motion Blur has been disabled. It was a factor in the input lag issue, and needs to be retooled to work correctly. We're going to gauge the demand but currently didn't have the bandwidth to add it back in for this update. " Source
From Patch notes https://forums.station.sony.com/ps2/index.php?threads/update-notes-8-5.196032/ Removed the option to toggle motion blur from settings because the feature itself has been temporarily disabled (see Known Issues section below) Motion Blur has been disabled. It was a factor in the input lag issue, and needs to be retooled to work correctly. We're going to gauge the demand but currently didn't have the bandwidth to add it back in for this update.
