iPad M2 screen has white spot and shadow

Your photo illustrates significant backlight delamination - for which the only remedies are (a) replacement of the screen, or (b) replacement of the iPad itself.

You would be best advised to visit the Genius Bar at your local Apple Store or Apple Authorised Service Provider (AASP) - where the technicians will be able to perform a hands-on assessment of your iPad and you can explore your available options:

Genius Bar Reservation and Apple Support Options - Apple

For practical purposes, in lieu of repairing and returning your own iPad, Apple usually exchange a qualifying iPad for a renewed/refurbished iPad of the same model and specification. The cost of the exchange is the same as would otherwise be charged for repair. Unless you have benefit of an active AppleCare plan, an out-of-warranty repair while expensive will be somewhat less than the cost of a replacement iPad.

As for out-of-warranty repair costs, Apple offers a fixed-price price repair. You can verify eligibility and cost for your region/country here:

iPad Repair & Service - Apple Support

If you have an active AppleCare+ plan, the cost of repair is reduced to a small excess/deductible fee.

Welcome and thank you for reaching out. 🤗

There appears to be a problem with the internal display panel. Only a certified Apple technician can determine the cause and offer a complete solution.

Therefore, I recommend service.

Service Checklist:

• iPad service pricing.
• Check AppleCare Coverage.
• Get your iPad ready for service.

Service Appointment:

• Start a Service Request.

Contact Information:

• United States: 1-800-APLCARE.
• Contact Support.

Additional Support:

• iPad Support.
• iPad User Guide.
• Check Repair Status.

Good luck! 👋🏼😉

Smiliñ 😎 Brian | Community Volunteer