Yeah agreed. If it's bothering you or you have a bad case of it probably best to return if possible.
My replacement machine is definitely better than the first. The problem has appeared twice so far, once at the first (very) cold boot 5 mins out of the Amazon van last night (7pm), and once this morning. Both rectified by a reboot and it has yet to re-appear in todays session following said reboot at 08:30am. Same keyboard, mouse, screen, apps, settings as the first machine.
When the issue does appear there's less squares onscreen and they cover a smaller area. They also only appear at the top now, first machine had them both top and bottom.
At this stage I think I'm going to keep the device though. Main risk being if it fails outside the 12mo warranty of course, with any serious failure within that period covered. Theres always the chance of a software fix or fault acknowledgement in the meantime. Unfortunately for me I sold my Surface to return to the Mac after 6 years so don't have another machine to revert to.
If I was to guess I'd say it's a problem with some display controller. If it was a shared memory issue I'd expect the artefacts to show up in screenshots which they do not, it's almost as if the image leaves the M1/RAM just fine, but fails to reach the display intact.
Im no expert, just an observation.
Hoping for a resolution for everyone.
Best.