Standby working, but display messed up!!!

iPhone 14 Pro Max, Latest iOS 17:

Standby will start and has started since installing ios 17. The problem is that the display looks very very wrong!

I see the hands of the clock on the left (no digits, just blocks). where text should be on the right (calendar, temp, whatever) I also see BIG blocks.

The second hand will fly around the face for about 1 minute and then everything stops.

I have reset entire phone (factory restore), I have disabled and enabled every setting under AOD and standby. Nothing helps. I do not have SLEEP on and none of the other issues that can affect Standby are enabled or in a state to affect standby.

if I roll through the panel options I can see the text / images properly until the 1 minute mark, then everything goes back to being blocky.

See image below...