Same issue with 24" DELL U2421HE (2020) and Mac mini M1 (2020).
Mine shows both vertical and horizontal flickering (though never in the same location at once). It seems to occur mostly with dark grey colors but happened with very light colors as well. Dark mode is close to unusable at this point as several areas on screen seem to be constantly in motion. It happens with both HDMI, native USB-C, and DisplayPort-to-USB-C.
It does NOT occur with my MBP13 2015 and MBP13 2017, both running macOS Big Sur 11.1. It only occurs on the Mac mini M1.
It does NOT occur on my old 23" NEC EA232WMI and Sony KD-55XF9005 TV (same cables). It only occurs on the newer DELL monitor.
I had two phone calls with Apple already but we could not find a solution. We tried everything from changing cables to power resets, resetting the monitor, and ultimately reinstalling macOS. I was told to wait for macOS 11.1 which I did but the problem persists. They did tell me though that there were issues in the graphics driver for M1 macs.
Even after several weeks and hours of tinkering I could not narrow down the cause (or at least a partial remedy). The presence and severity of the flickering seems to change depending on the colors visible on screen. For instance, opening the monitors OSD sometimes changed with flickering (for better or worse). It happens with only a single window open but sometimes changes when additional windows are visible (on top).
I found that tinkering with color modes sometimes brings improvement, especially when it results in affected grey areas to be displayed in a darker shade. However, with this I have seen several black screens when waking the Mac from sleep. So it's really more of an anecdote than a workaround.
While adjusting color modes I realized that my Mac apparently does not even drive the monitor with (s)RGB as it should (YPbPr). Afaik the latter is designed for TVs. Setting the monitor to RGB results in a purple screen. Apparently this is a known issue:
Unfortunately, the (previously known good) workaround no longer seems to work on M1 Macs (see https://gist.github.com/adaugherity/7435890). Most likely not the root cause but I could imagine it's somewhat related.
All in all it's pretty annoying because it's not just an app that does not work but affects the whole UI. What's frustrating is that it seems to affect random displays so I cannot even order a replacement display without having to worry about a refund. All we can do is wait for Apple to locate and fix the issue.