Could it be 8bpc framebuffer being output as 10bpc HDMI? I think the Graphics/Displays tab in System Information.app will show framebuffer info. SwitchResX will show output timing. AllRez will show output bpc for Intel Macs that are using modern GPU drivers. Older GPUs on Intel Macs require a kext to get output bpc (my Lilu/WhateverGreen for example - though I want to try to make a kext that doesn't require Lilu/WhateverGreen). It's good to have a display that shows timing and color info.
If BetterDisplay.app is not showing the correct output bpc, then maybe it's a bug.
There's an example of AllRez output for a M1 Mac at
https://forums.macrumors.com/threads/diy-5k-monitor-success.2253100/post-31258601
You see it has 3 displays. There's 4 methods to get bpc for the current display mode.
CGDisplayCurrentMode
always seems to report 8bpc so it should be ignored if the other methods are available.
One of the displays shows
64bpp 16bpc
but it also shows encoding
--------RRRRRRRRGGGGGGGGBBBBBBBB
which is 8bpc. Probably the former is true.