- Edited
@aiaf just found AN IMPORTANT ONE
Disable VUCEnable
This causes even more banding to appear on the gradient test than just disabling dithering on my M1 Max XDR.
Additionally, "irregular patterns of boxes" appear on certain solid color background shades.
Potentially this is disabling the internal panel's FRC???
If you turn the Mac backlight up to max and Software Brightness (BetterDisplay) very far down, you will also now see a "dark, heavily banded blotch that follows the mouse cursor like a trail" when moving the mouse on a dark gray background. (Easily seen after zooming in with Ctrl+Scroll accessibility zoom.)
This confirms another thing I swear I could see for years, where it always felt like there was a dark spot around the mouse or that there was an area flickering around the mouse (specifically on the internal display). There IS, and it was literally being dithered (i.e. flickered) to hide it, too.
This will also make a strange "animation" visible (that was present before but now very obvious) of all the "blotches" I've pointed out moving around whenever Software Brightness is changed, lagging behind a second or so with what seems like an intentionally smoothed out animation — even when BetterDisplay's own "software brightness smoothing" is disabled.
I still don't know how to disable these blotches, but one thing's clear — they're basically programmed to "move around in the corner of your eye at a slower, smoothed out rate compared to everything else" whenever colors change on screen. And before enableDither=false, uniformity2D=false and VUCEnable=false, the effect was being dithered very aggressively in order to "hide" whatever this is.