Hi David, thanks for your question.
The morph feature uses the stroke path of an image so the blob you see are the lines being transformed from one image to another.
If you're using morph to give a moving effect, it is best to use the same image rather than 2 different ones.
If you are using the same image, make sure either image is not flipped or rotated for the best effect.
I have had a look at your example.
From what i can see this is a PNG/Jpeg image imported into VideoScribe and VideoScribe has converted it.
This is the expected results of a morph with this type of image.
The morph transforms the lines of an image (not the colour etc) from one item to another.
Perhaps you're better off using the Moving in feature with no hand?
Whenever I use morph to move an object, it turns into a blob mess while it's morphing. How can I stop that from happening?