Update

General steps to make sure that is not "side effect" but the bug of the application.
1) Restart PC.
2) Remove the Source - re-add the Source.
3) Rearrange the displays in Windows (in all ways, right to left, top bottom, etc. etc. even if it looks illogical)
4) Repeat p1 and p2.
5) Download and start in Portable mode one of the previous builds of the OBS.

Any news on p.5 ?
 
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Your log has no recording or streaming session so can't see what OBS is doing

Are you talking about the Infinity Mirror Effect If so, then you are capturing the screen OBS is on So, it's capturing an image of itself
Maybe post a screenshot
 
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