Pixelation appears especially on VS code and Chrome

You when you try to take a screenshot the screen does not show the artifacts? Vice the screenshot not showing them?

Try booting to Safe Mode. That boot up takes minutes and clears caches and other things that may resolve your problem.

How to use safe mode on your Mac - Apple Support

A lot of times just boot to Safe Mode followed by normal boot resolves problems.

If you have an external SSD, you can do a fresh install of Monterey and then boot from that and see if problem persists. That is easier than wiping internal disk and doing a fresh install.

Do they appear in a screenshot?

Does your model MacBook Pro have dedicated GPU?

Maybe a GPU/hardware problem

Do you know when the Mac is using the discrete GPU vice the one built into the CPU. The one in the CPU uses less [power than the discrete and also uses system memory vice the discrete GPU using dedicated memory in the GPU.