Bad news guys. iOS 17 still not solve this problem.
Reminder Apple trying to fix this since 16.0.2 but they didn't say about 3rd party screen. It is just say after being serviced.
Summary until now.
iOS 15 touch screen working normal.
iOS16 made touch screen wonky.
Some people suspect 3rd party screen is to blame. Which is work great in iOS 15. People buying second hand without knowledge whatever previous owner do to their iPhone is screwed. But then there are also report some iPhone with original parts also affected.
Stop gap measures using Accessbility Touch Accomodation.
iOS 16.4.1 somehow making it less bit annoying when touch screen freeze again.
iOS 16.6.1 making it worse again with random freeze touch screen that must hard reset.
iOS 17.01 still same with 16.6.1. Touch Accomodation barely help anymore.
Previously there are report their iPhone return to normal behaviour after software restore, that mean wipe all and reinstall iOS from fresh. I willl do later if I have time.
[Edited by Moderator]