I must confirm this bug. This also happens if just restart the game.
After entering the video(settings) screen, my settings restore.

Not really a bug. Watch this guide. http://www.youtube.com/watch?v=UVGxHTXbaoo

The black and white screen is from blood loss, while BLURRINESS is from your "Health" stat.

Blood bags or saline IV's may fill up your blood value, but your health stat may ONLY be increased from natural regeneration. You will know if you're regenerating if you see a "Healing" or "Healthy" status in your inventory.

If you watch both videos from the author, you'll learn that regeneration ONLY occurs if you are well fed and hydrated. (Really well fed/hydrated, continue to eat and drink even if you don't see the "Hungry" or "Thirsty" tag. You can hold a MONSTEROUS amount of food in you, and the values to begin healing are rather high)

I think the only bug is going to settings "Resetting" the blurriness.

Just did a search to find this same type of issue to confirm I am getting the same.
When wounded or even hit once by a zombie vision blurred. All efforts to repair damage or sickness work in all ways except to "fix" the blurred vision.
I just died tonight at the shipwreck due to "bouncing" suddenly 30 yards or so out over the water from inside the bridge and fell to my death.
I respawn new and have extremely blurry vision. I took screenshots but can't post them here. I did the video setting menu and it disappeared.
As others have stated in other threads like this, after fixing or respawning and still blurry, simply go to video options and back again and the blurriness goes away and normal crisp vision is restored.
I understand the intent of the blurred vision but it does not seem to be working as intended and once damaged, always stays blurry (at least for my own and many other system configurations).

yup, same here, please fix this