Pixel Flickering

My new Mac updated to a new software 12.3 today and since morning I have been seeing pixel flickering on the top right small rectangle during every motion or graphic change. I tried removing my extended display and after that it is acting normal. I don't know if it with the display adapter to extend type C - hdmi or new software. What do you think is happening?

Here's a screenshot that I was luckily able to capture it: