This is very strange, but I experienced heck crazy flickers in the past. Since M1 I have been experienced issues with displays flicking like crazy. I had a M1 MM, M1 MBA, M2pro MBP and now, have a M3Pro MBP. All of them flicking with my display. I tried a lot of cables, adaptors and whatever, with no results. So I faced my display. It was an LG 4k display.I currently have the Mac Studio hooked up to a LG 32UD59-B. There the 60Hz works without flicker (same DP cable). With the LG UltraGear 27GL850-B it flickers at 60Hz.
I ordered a Gigabyte 4k display for testing, planning to return it if the flicker would persist. And it has been running rock solid for 8 months (with the supplied USBC cable!!). No flickering at all. Variable refresh rate or not. It doesn't matter.
I bought a second one to use a dual display setup and booth are running with no flicker at all. My conclusion is that, somehow, LGs displays are prone to such a thing. It's my theory, nothing more. But I won't buy an LG display again.