Update/summary to pink flashing screen issue: I have been having this problem with the Ultramarine wallpaper on my new (three weeks old) iPhone 16. Contacted Apple Support, they ran a remote test, no issues, and definitely not a hardware issue. Escalated the case and I have been working closely with an Apple technical specialist who works with the engineering dept. They suggested I try to capture the phenomenon with my iPad and then send the file to them. Unfortunately after many many attempts I failed to capture the flashing screen via screen shot or recording with my iPad. To date, it still occurs, but less frequently and it never occurs when I switch the Ultramarine wallpaper to either a photo in my library, or another Apple wallpaper.
The specialist and I spoke today and she stated that they are now aware of it and will likely issue a software update in the future (didn't say when). In the meantime, the workaround is to use a different wallpaper, which many here are already doing.
My suggestion to others is if you can possibly capture the flashing pink screen happening with another device, contact Apple Support and see if you can send the file to them. Hopefully having the evidence in hand may help them get a fix out sooner. It beats replacing phones unnecessarily.