I wonder why the infrared light exites the blue pixels.
Cameras use interference filters, so if there fits one wavelength of IR instead of two wavelengths of blue into the layer thickness or some grating distance, it reflects/passes through the same way.
Using 2'nd overtone thickness for the blue makes it sharper cut off on the border, but also passes the IR as the consequence.
That is the reason a dedicated IR blocking filter is needed, when you want to maintain good colors. But security use benefits more from the eventual IR illumination and does not need good colors that much, so the filtres are omitted.
The bright suppression feature is not aimed that much on the sun, but mainly incandescent car headlights (to make a car approaching the camera post visible,...). Dont forget the incandescents are nearly 10x brighter in IR than they are in visible, so HID may not be by far that bright. Of course, the sun is another level there...
The fact the image is flooded could be due to the optic being dirty or degraded over the years (if we are talking about some used equipment). And this dirt is, what essentially makes the security cameras reaching EOL - the scatter makes the image too bad to recognize/read anything useful there.
If it is on something "new" (from ebay,...), I would be questionning if it is really as new as promised or if it is really such bad quality. To be honest such sun swamping is not supposed to be that bad as it is on your picture.