I of coursed returned it to the Apple Store. While waiting for my replacement I've tried on the demo iPad Pros (that was on iPad OS 18) and the exact same flicker happens on the same scenario.
After I got my replacement iPad Pro, I unboxed it and it came with iPadOS 17.4. I tried changing the wallpapers from light to dark mode but there were no flickers at all. Then I upgraded to iPadOS 18, 1 then went through the same themes wallpaper from changing from light to dark mode, and unfortunately it's still flickers on the second brand-new unit.
So far from my testing, it only flickers while configuring the default wallpapers on iPad OS 18. As mentioned it didn’t happen on iPad OS 17.
Interestingly, when I put it in portrait mode, and configure it appears it does not flicker. It only flickers when it’s in landscape. This is consistent for the first iPad pro I bought, the demo iPad Pros of the same model (11” iPad Pro M4) in store, and the replacement second brand new iPad Pro.
What do you think I should do in a scenario? Return the iPad or does this appear to be an iPadOS 18 issue?
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