This issue was resolved.
It turns out that I have disabled the screencast plugin in ~/.config/kwinrc
I figured this out by creating a new user and testing obs and discord. As both were working fine, someone on a different forum suggested to look into my user config.
Here is the diff output:
diff -y -b -B /home/blueeyedcrow/.config/kwinrc /home/test/.config/kwinrc --color
[$Version] [$Version]
update_info=kwin.upd:replace-scalein-with-scale,kwin.upd:port update_info=kwin.upd:replace-scalein-with-scale,kwin.upd:port
[Compositing] <
LatencyPolicy=High <
<
[Desktops] [Desktops]
Id_1=2f0c3c91-72c1-435b-8ab5-fa2fe2878e8a | Id_1=5d900dc0-bd4d-44ab-9a17-0124d82123eb
Id_2=7e4d6456-b5c5-4814-9943-ac80a05e4988 | Id_2=636f3b7f-5ef6-47b9-975a-b225e2db921d
Rows=2 Rows=2
[Plugins] <
kwin4_effect_maximizeEnabled=false <
kwin5_plugin_screencastEnabled=false <
<
[Tiling] [Tiling]
padding=4 padding=4
[Tiling][015e7436-f4fd-5877-98dd-2d49f4cd9822] <
tiles={"layoutDirection":"horizontal","tiles":[{"width":0.25} <
<
[Tiling][061fd18c-f302-5138-95a3-b270ac3f43a9] [Tiling][061fd18c-f302-5138-95a3-b270ac3f43a9]
tiles={"layoutDirection":"horizontal","tiles":[{"width":0.25} tiles={"layoutDirection":"horizontal","tiles":[{"width":0.25}
[Tiling][1173f3d8-7be1-561e-98ef-c41d109220fc] <
tiles={"layoutDirection":"horizontal","tiles":[{"width":0.25} <
<
[Tiling][183d0b27-6ff1-5f7c-a67d-b48826ef4fc0] <
tiles={"layoutDirection":"horizontal","tiles":[{"width":0.25} <
<
[Tiling][20cce1a6-a81a-5fcf-afec-8b3ca417cb30] <
tiles={"layoutDirection":"horizontal","tiles":[{"width":0.25} <
<
[Tiling][5780c2cb-e57f-57d9-9013-e758f650953e] <
tiles={"layoutDirection":"horizontal","tiles":[{"width":0.25} <
<
[Tiling][58eee382-ced8-5000-90d3-5398b0db3f24] [Tiling][58eee382-ced8-5000-90d3-5398b0db3f24]
tiles={"layoutDirection":"horizontal","tiles":[{"width":0.25} tiles={"layoutDirection":"horizontal","tiles":[{"width":0.25}
<
[Tiling][5935157a-1005-5c02-b35b-8b94b86e3bd6] <
tiles={"layoutDirection":"horizontal","tiles":[{"width":0.25} <
<
[Tiling][74a53254-c5b5-5c2e-b444-25c927d5d10c] <
tiles={"layoutDirection":"horizontal","tiles":[{"width":0.25} <
<
[Tiling][92e842d7-5928-5c43-884a-4912e7cc82ed] <
tiles={"layoutDirection":"horizontal","tiles":[{"width":0.25} <
<
[Tiling][a67cfcdf-13f5-5133-a25b-2169d2426d5a] <
tiles={"layoutDirection":"horizontal","tiles":[{"width":0.25} <
<
[Tiling][d4c6aa55-aeee-5163-a1f2-9ad81e4f7b0b] <
tiles={"layoutDirection":"horizontal","tiles":[{"width":0.25} <
<
[Tiling][fe4b79ab-fcfd-545a-a05f-d32302fccd2f] <
tiles={"layoutDirection":"horizontal","tiles":[{"width":0.25} <
<
[Windows] <
SnapOnlyWhenOverlapping=true <
[Xwayland] [Xwayland]
Scale=1 Scale=1