Macbook Pro M2 ghostly pointer when on low power mode

I have a brand new (well, kind of - refurbished ;) ) Macbook Pro M2, which I have just started using. Immediately I updated it to Ventura (so I don't know if this issue is related to the latest macOS version). I am seeing weird pointer trailing (it's kind of ghostly - the animation seems to be lagging behind). Restarting the machine doesn't help, so I am guessing it doesn't really have anything to do with the CPU usage or memory consumption. Also I don't really have anything big running. Also checked the background processes. I have actually just manually cleaned up my machine and removed a ton of stuff which I have not been using much recently.

I have noticed that disabling the "Low power mode" in the Battery section in preferences immediately fixes the issue, but I would quite like to use the low power mode. Does anyone have any suggestions or insights? Could it be an issue with Ventura?