Cam Pan V2 light issues

I just purchased my first Cam Pan V2 and the first night of using it has produced both unfavorable and favorable results. I am using a Tendelux 80ft IR Illuminator since my first Cam Pan V1 needed the extra illumination but with the V2’s night vision turned off, the street lights it sees are washing out part of the picture while with the night vision turned on I get a great black and white clear picture.

Is the Cam Pan V2 designed to work only in a totally dark environment to use the color night vision? I have attached pictures to show the difference. I do have a lot of street lights around my home but I did not expect these results.

I have also noticed a lot more WiFi lag that I did not have before and I am not happy with that as well. Is there any way to fix this exposure issue?