D&D 5E - Ghostly Gaze: how does it *really* work?

In tonight's game the warlock used his Ghostly Gaze invocation (Xanathar's p56):-

"As an action, you gain the ability to see through solid objects to a range of 30 feet. Within that range, you have darkvision if you don't already have it. This special sight lasts for 1 minute or until your concentration ends (as if you were concentrating on a spell). During that time, you perceive objects as ghostly, transparent images."

Because I had an interpretation which is supported by those words, I didn't think of any other way to interpret them. I found out tonight that there IS another way to interpret those same words, and those people who thought that way had never considered another way to interpret them either!

But....which way is the right way?

Is it that, within 30 feet, objects are transparent to you, but otherwise your vision works as it usually does-plus darkvision within 30 feet....

OR

....is it that while using this invocation your normal vision ceases to function, instead limiting your vision to 30 feet maximum, but giving you darkvision and objects are transparent to you?

To visualise the difference, imagine you climb to the topmost tower of your castle, up to a 5 foot by 5 foot room, four walls, with shutters on each wall. While the shutters are open, you can see for a mile, as there are no objects in the way.

Now close the shutters, and you are in a dark 5x5 room. Now use your action to gain Ghostly Gaze.

With the first interpretation, all objects with 30 feet become transparent to you (it's midday so the darkvision doesn't come into it), so you can see 1 mile in every direction as if there were no walls, but also see a transparent, ghostly image of the walls.

With the second interpretation, you see through the walls in exactly the same way....but for no further than 30 feet! Seeing....what? A grey void as a 30 foot bubble?

The words seem to support you whichever interpretation you choose! But there must be a correct way intended by the writer!

So which is it?

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