I just upgraded to 12.1 yesterday and immediately encountered this issue. I have a 34" Asus USB-C 21:9 ultra widescreen that has worked perfectly up till I updated the OS. Now if I go fullscreen on any app with that monitor the screen flickers on and off, it's completely unusable. Luckily if I don't fullscreen the app, but this needs to be fixed. I'm glad to see I'm not the only one encountering this.
Prior to this update the monitor worked fine. I work remotely for work using Microsoft RDP and it was great, RDP used all available screens at native resolution. I cannot utilize that feature any longer, I must either adapt to this bug or downgrade. I thought it was just Microsoft RDP that was causing it since if I left fullscreen it stopped. But then I went fullscreen on a youtube video with google chrome and the flickering returned. So this is definitely an Apple issue introduced in the OS 12 update.
Please fix this Apple. There are 8 pages of this issue since November.