I am probably going to have to move this to the VFX section.
We did try all the blur effects. They just blur the image. The problem does not go away. Even if you isolate the shirt.
We are probably going to have to roto out the shirt and attack it in after effects.
The image has a banding with contrast as well as color.
The issue was a sharpness setting on the camera. Set to TOO SHARP. We shot 64 hours of footage and this was the only time we had this specific issue. It was a second unit shot with a different DP. There were other times with moray because of shirts, but nothing like this. I believe the camera is trying to process too many colors as a 422.