I'm sorry, A Brody. I should elaborate. This issue isn't overall blocky video or color banding. It is only dark areas of the video. This issue has been occurring over countless iterations of the MacBook Pro. Users are experiencing this with all of the popular browsers and all of the popular streaming services, to include Apple's native Safari and AppleTV/iTunes, regardless of internet speed.
That being said, it stands to reason that it's the answer is not a matter of which browser, streaming service, or internet connection you have. As I stated in the original post, I am running an M3 Max with fiber to my home. The wifi signal is 5ghz 289 down and 156 up, but we have even seen issues reported with ethernet connections.
Worse still, some users have done A/B testing with downloaded HD and 4K content from iTunes and various streaming services, and the issue has improved some, but persists in showing blacks at far below HD video quality.
A suggested fix has been to turn off Auto Brightness, True Tone, and Night Shift. Why these features would affect pixelation in the dark areas of video, is beyond my expertise, but it's been tried with mixed success.
There have also been suggestions for adjusting the display settings from Apple's XDR Display to one of the other available presets. BUT, if this simple fix was the solution, why wouldn't Apple just tell us, or add a feature to toggle between normal work and streaming video settings? It's a very cumbersome and un-Apple kind of issue (more like a post-Steve Jobs kind of issue).
My real question, is with such a prevalent problem across various platforms and affecting, my guess is most MBP users, why hasn't Apple chimed in or done anything at all to resolve the problem? Do they not know? Do they not care? Or are they just denying it because fixing it would be admitting to an ongoing flaw in one of their flagship products?