Hi Alexis_margret_124,
Welcome to Apple Support Communities. We understand that you're having an issue with using FaceTime on your iPhone SE. We'd like to help.
Can you tell us a bit more about this issue. Are you using the forward facing or rear facing camera when you see this? You mentioned that a circle pops up with anything close to the camera. Do you mean that whenever there is an item that come in range of the camera's view it turns it into a blue/white circle?
While you're answering these questions, we have a few steps that may help. If you're not already running iOS 16.3.2, let's have you do that and see if the issue resolves in the updated version:
Update your iPhone or iPad wirelessly
- Back up your device using iCloud or your computer.
- Plug your device into power and connect to the internet with Wi-Fi.
- Go to Settings > General, then tap Software Update.
- If you see more than one software update option available, choose the one that you want to install.
5. Tap Install Now. If you see Download and Install instead, tap it to download the update, enter your passcode, then tap Install Now. If you don't know your passcode, learn what to do.
You can follow more steps here to help with updating: Update your iPhone or iPad - Apple Support
Let us know if that helps while answering those questions above.
Cheers!