6. Increase Blur and Transparency
Unlike before, when your grey circle was just a shape, it is now an image, which allows you to adjust the settings.
Click on your shape and select the adjust button. Under the adjustment menu, increase the “blur” effect. You can play around with this setting later to perfect things, but as a rough template, increase the blur to ~40.
Next, you want to increase the transparency of your image. Like the step before, you can later go back and adjust this setting to your exact liking, but for the purposes of this example, adjust the transparency to ~25.