Yep, ACM is another place where dithering is enabled (so making things worse), as you may even read in its description: "Even on displays that only support 8-bit color, auto color management helps to improve color quality by using different techniques, such as dithering."
Some people reported that turning it off on Windows 11 made the setup usable. In my specific case, unfortunately, anything newer than Windows 10 from June 2023 is unusable. I tried several Windows 11 builds on none of them was fine unfortunately. But please note that everyone is different.
Best Regards,
Tom