Here are some links corroborating evidence towards this issue:
Google Chrome users, reporting this issue since April 2020
https://support.google.com/chrome/thread/39447594?hl=en
Macrumors forums, reporting the same since April 2020
https://forums.macrumors.com/threads/sudden-graphics-corruption-16-macbook-pro.2230856/page-2
Google Chromium bug tracker, also first reported April 2020:
https://bugs.chromium.org/p/chromium/issues/detail?id=1068170#c179
Apple support was absymal – I was told my request will be forwarded to 'Apple Engineers' (where? when? no follow-up?) when the support session never got anywhere. There needs to be a concerted effort to highlight this known issue to Apple, and for Apple to acknowledge that there is either an issue with the mbp 16" hardware, or why Chromium is seemingly misbehaving with the mbp 16". For what it's worth, this could be an issue in Chromium, but a priority 1 bug that's open since April 2020 doesn't bode well. Are mbp 16" owners left with a lemon?
Restarting the laptop makes the problem go away, but the glitch will return, especially after a long period of sleep – this behaviour can be consistently repeated especially when your laptop is running a Chromium application and it goes to sleep, with or without a second display. Sometimes the glitch just shows up even after a period of regular use.
What seems to be the most viable interim solution is to disable "Out of process rasterization" in chrome://flags
This will 'resolve' the situation for a while. But the glitch has returned on my mbp 16" after a few weeks, exhibiting the exact same issues as above. For those asking where to disable 'Metal', Chrome's recent updates have removed that option.
'Disabling hardware acceleration' on Chrome is not feasible – as mentioned by the previous post, so many apps rely on the Chromium framework. Running most of them without HW acceleration is impossible. Therefore, not a solution.
Also please don't provide the advice of resetting the NVRAM – this has been tested to not work, and comes across as an uninformed, untested bandaid 'fix'.