Hi varadm,
Thank you for using the Apple Support Communities! I understand you are experiencing a concern with your Touch Bar, and I'd like to explore this further to help out.
The video you've shared is much appreciated! Let's walk through some isolation steps, so we can determine the best way to get this addressed.
Let's have you boot up into safe mode. It’s a way to start up your Mac so it performs certain checks, repairs, emptying of system cache, and prevents some software from automatically loading: Use safe mode to isolate issues with your Mac - Apple Support. Once in safe mode, check to see if the same behavior continues with your Touch Bar. Sometimes safe mode can successfully resolve some issues. With this being said, after testing in safe mode, restart and log in as normal to see if that helps resolve the issue.
If the issue remains, I will have you test a new user account next, to isolate if this is a user-specific issue, or a system-wide issue. Here’s how: How to test an issue in another user account on your Mac - Apple Support. Based on the results in the new user, you could continue to the section titled 'If the issue doesn't happen in the other account' or 'If the issue happens in the other account' to continue troubleshooting.
Also make sure your macOS is fully updated: How to update the software on your Mac - Apple Support.
Keep me posted with the results. Regards.