This is truly one of the strangest computer problems I have encountered in decades. I've had to take a video of it and also check with my friends to see if the problem wasn't just in my head
It seemed impossible to me that it wasn't the display's fault and I even managed to reclaim one display at the manufacturer, based on the video footage
Unfortunately, the new display started suffering from this problem within a few days.
I have an MBP M1 14", and two ViewSonic VP2785-4K, connected via CalDigit TS3+ (USB-C and DP). The first time this happened to me was about 2 years ago, not long after I got the 2nd display. I never use the build-in display, my MBP is always closed.
My observations:
1) The error also occurred with another MBP M1 borrowed from the work, with completely different software.
2) The problem never occurs when only 1 (external) display is connected.
3) It doesn't matter how the displays are connected. The error can happen when connected via dock (USB-C or DP) or directly (HDMI or USB-C). Connecting to a different port or restarting the display doesn't help at all.
4) The error manifests itself very irregularly. Sometimes every few hours, sometimes after a few weeks.
5) The only solution is to completely reboot the computer or wait a few hours.
6) The error always starts only on one of the displays, but when it occurs, there is a good chance that after some time (minutes or tens of minutes) the other display will also start flickering.
7) The intensity of the flickering can be influenced by the displayed content. Bright areas and alternating contrasts areas seem to be the most problematic.
8) Strangest issue is the ghosting effect. I absolutely don't understand how this can be possible. It looks like burnout pixels with some sort of transparency, like if your display has been showing the same image for many months or years and then you changed it. It can't be removed by, say, scrolling the window or displaying a different content, it is there until you reboot. But strangely enough, it is not present on screenshots or via screen sharing.