Flickering horizontal lines on Apple Studio Display after upgrading to Sequoia 15.3.2

I updated my Mac Studio (2022, Apple M1 Max) last night to Sequoia 15.3.2. Immediately following the system restart I noticed some flickering/blinking horizontal lines across the whole screen. After reading online about similar display issues caused by OS updates to Sequoia, I have tried the following solutions:

1. Diagnostics app on startup: no issues detected.
2. Safe mode startup: lines still appear.
3. Reinstalling Mac OS via Recovery: no use either.

I then got an appointment at an Apple service provider and they argue that the Studio Display is the issue and that the lines are due to pixels dying out. Basically the only option they offered is replacing the whole display unit for almost the full price (approx. 1500 USD).

The Mac Studio unit appears to work fine when connected to a different display, but the issue with the Studio Display only occurred immediately after the Sequoia update, so I suspect something must have happened with the display processor or something.

Has anyone had similar problems or could anyone offer any advice on possible solutions? I am trying to contact Apple technical support again to explain the issue.