One should have zero impact, as I said, modern crypto algorithms do not depend on keeping the algorithm secret to maintain security. Implementation can absolutely be full of bugs that are incorrectly using crypto primitives though.
The other has a direct impact on security.
I don't think one blurs the line to the other, they're fundamentally different things.
If anything, this is further proof that you need to use crypto properly because it literally means someone with code in hands won't have any advantages in attempting to break that encryption.
To me anyway, someone willing to give source code to the NSA doesn't imply they'd be willing to do nefarious things. There's nothing inherently nefarious about giving the NSA source code.
That said, I can understand being skeptical, but people love to talk about how open source is more secure because it has eyeballs on it. But now we try to pull the "it's not secure because the source was given to the NSA"
It can't be both ways.