waydabber both simply remap one color to an other but does not create "new" colors that require extra dithering
So it's specifically telling Metal to remap the colors within a quantized 8-bit or 10-bit space? I would assume that Metal adjustments would be instead probably using the full floating-point 16-bit color space (which the macOS desktop has used for compositing since OS X Tiger) which definitely would introduce "new colors"
I already know that spatial dithering is still used in Metal powered apps in macOS even after disabling temporal dithering, as Preview and Quick Look will show 10-bit gradients with spatial dithering (which you can even see if you Ctrl-zoom in) at least on the m1air, implying that Metal or the WindowServer compositor has at least some form of dithering (but maybe not the moving kind) in some part of its process
All I know is that I was randomly having a REALLY hard time focusing on the screen, then I realized metal adjustments were on (which I forgot had re-enabled itself by launching at login, so I actually wasn't conciously aware for a while that my Metal adjustments had turned themselves back on in any way), then when I finally realized, I quit BetterDisplay (I was in a dark room) and I literally saw flicker stop and solid colors suddenly become a lot more "clean looking" after the adjustments disabled
FWIW this has only happened on the m1air 👀
Metal adjustments didn't cause this issue for me on M2 Touch Bar Pro, and I totally don't think it would affect anything on external monitors either (would be interesting to test with a capture card) — I remember the screen still looking totally crisp and smooth on the M2 TB Pro after switching from color table mode to Metal mode. So this is a very m1air specific issue
The regular "color table adjustments" mode works fine on m1air and doesn't introduce the type of flicker that I can see in Metal mode