So my outdoor camera/motion light started alerting us of movement. When I checked the footage it looked like it was raining heavily. We’ve had zero rain in a few days. So I stepped outside and the camera is legit smoking or steaming. It’s not hot to the touch. Its not cold outside to create a steam. Should we disconnect this camera? What is causing this? I have videos but being a new user, I can’t upload it.
I would definitely disconnect it if it is smoking.
Welcome to the Forum, @littlebit2loud! 
According to your Forum profile, you joined this community within the past day (as of this writing). Your profile also indicates that you’re currently at Trust Level 0, which means that you can’t post any attachments aside from images, which you realize. If you want to post a video, then getting to Trust Level 1 (see the link) doesn’t take much effort. I think that would be helpful in providing some clarity about what’s happening.
Also, this makes me wonder which product you’re using:
Since Cam Outdoor v1/v2 (the tags you used) doesn’t have an integrated light, I’m wondering if you’re talking about Bulb Cam, one of the Cam Floodlights, or something else. A video is going to demonstrate that (I’m imagining you recorded video with your phone showing the camera itself, possibly in addition to whatever the Cam was recording), and making adjustments to your topic tags can help improve its visibility.
I agree that disconnecting it is prudent without more information about what you’re experiencing.