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Desfocado vs. embaçado vs. Turvo

While desfocado, embaçado, and turvo can all translate to blurry in English, they are not interchangeable in Portuguese. The correct choice depends entirely on the physical cause of the blurriness: whether it is an optical adjustment issue, surface condensation, or a cloudy substance.

Desfocado

B1
This word comes from foco (focus). You use desfocado when a camera lens or the human eye is not adjusted correctly to distance. It refers strictly to sharpness and definition. If the lines of an object look soft because the lens is aiming at the wrong depth, the image is desfocado.
A foto ficou ruim porque o meu rosto está desfocado.
(The photo turned out bad because my face is out of focus.)
Sem os meus óculos, tudo ao longe parece desfocado.
(Without my glasses, everything in the distance looks blurry.)
O fotógrafo deixou o fundo desfocado para destacar a modelo.
(The photographer left the background blurry to highlight the model.)
A imagem do projetor está desfocada, por favor ajuste a lente.
(The projector image is out of focus, please adjust the lens.)

Embaçado

B1
This describes blurriness caused by something covering a surface, usually condensation, steam, breath, or grease. If you cannot see through a window or glasses because of temperature changes or humidity, the glass is embaçado. It implies a layer of mist is obstructing clarity.
O espelho do banheiro ficou embaçado depois do meu banho quente.
(The bathroom mirror got foggy after my hot shower.)
Limpe os seus óculos, eles estão todos embaçados.
(Clean your glasses, they are all fogged up.)
Não consigo dirigir porque o vidro do carro está embaçado.
(I can't drive because the car window is steamy.)
A janela estava embaçada por causa da chuva fora.
(The window was misty because of the rain outside.)

Turvo

This translates best to murky, cloudy, or turbid. It describes a lack of transparency caused by particles suspended in a liquid or a medium. When referring to vision, turvo is used when eyesight becomes dark or cloudy due to dizziness, fainting, drunkenness, or a medical condition (like cataracts).
A água do rio está turva por causa da tempestade.
(The river water is murky because of the storm.)
Minha visão ficou turva e eu desmaiei logo em seguida.
(My vision went blurry and I fainted right after.)
Ele bebeu demais e começou a ver tudo turvo.
(He drank too much and started seeing everything blurry.)
Não beba esse vinho, ele parece estar turvo.
(Don't drink that wine, it looks cloudy.)

Summary

To summarize: use desfocado for optical issues (out of focus cameras or eyes); use embaçado for surface obstructions (steam, fog, condensation on glass); and use turvo for opacity and gloominess (murky water, dizziness, or medical vision loss).