M5 Max internal display artifacts after monitors wake from sleep

Hello,

I have like a month old MacBook Pro M5 Max (40 core GPU, 4 TB, 64 GB RAM) and in last week or two graphics artifacts appeared on my internal display (see attached picture, white squares are done by me to cover personal data). These artifacts only happen on internal display and never affect connected external display.

Now to give you context:

I had a MacBook Pro maybe 20 years ago, which had similar issue, logic board was dead and I went through horrific 1 year long storyline including 3 logic board exchanges (literally months in repair service without having any replacement in Apple centre in Amsterdam EU, every repair took over a month) before I was finally given a new MacBook, because it was not repairable. But this, while symptoms are similar, doesn't seems to be the same case. So far:

1) This issue happened maybe 5 times total.

2) It always happened with external display connected: 4 times with a 2k 360 Hz OLED display (connected DP to Thunderbolt with 10k high quality cable), which I have toned down to 144 Hz now and 1 times with 4k 60 Hz display (connected via USB C cable to dock and Thunderbolt between dock and MacBook).

3) It always happens only when the displays go off (system setting which turns displays off during inactivity after 10 minutes) and on again (straight after waking from display sleep state).

4) It's always fixed by restart.

5) If I make a screenshot during the issue, the screenshot is perfectly fine, its a display issue.

6) It can happen under load (game running on external display in a menu, fans are actively cooling, external 2k OLED display) or without any real load (working - office tools, mail etc., no fan cooling - external 4k display).

I put several AI models to work and their suggestions range as expected. Here are some conclusions:

1) Not your logic board — this is almost certainly a color profile/GPU driver glitch on wake from sleep with an external display connected. Classic symptom: wrong color LUT gets applied to the internal panel, washing everything out with that pinkish/lavender cast.

2) The sparkly/pinkish/corrupted artifacts at the bottom of the screen (visible in your photo, especially in the Discord UI area) are classic graphics artifacts. They’re triggered by high GPU load + external monitor connection + waking from sleep. This points to the graphics subsystem struggling under stress. (My comment: Its not happening only with high load, as described above, it happened once with basically no load.)

3) Set:

Turn off ProMotion, change to 60 Hz

Turn off True Tone

Turn off Night Shift

Turn off display sleep

I ran Apple Diagnostics, found nothing. I did suggested steps in point 3 as well.

The real question is, is this hardware failure (logic board, GPU etc.)? If it would, it's strange restart solves it.

Is it SW related wake/display-state glitch?

Do you have any suggestions what I should try? I guess the short term fix is indeed turning off the display sleep, because it only happens then but is that it?

Thanks for any help/tips. Don't really want to go for repairs, I'm in EU, not US and I still remember how it went last time. It's hard to afford losing computer for month or whatever the current timelines for repairs are here...