NewDwarf Air M2/M3 have weird 60 Hz fluctuation. I think it is related somehow to the GPU frame rate but I am not sure.
It’s probably FRC. I don’t think the Airs are capable of sending a pure signal like the Mac Mini can to an external display. It’s going to apply the processing from the internal display unless you can disable the internal display’s FRC, which would require disabling it within the TCON, and no one has been able to figure out what software commands would disable it like Stillcolor has with the GPU.
My best guess is Apple wants to maintain consistency between the internal display and the external display so it will force this FRC into the signal. If it’s not that, then it’s ColorSync. But it’s probably likely ColorSync is playing a role in everything and I highly doubt anyone could easily retrofit a solution like was possible in the past using RGB color profiles.
One could prove or disprove both our theories by using different forms of each chipset: M2, M2 Pro, M2 Ultra, M2 Max for example (I don’t know it that exists for that generation; I know the new Mac Studio has an M3 Ultra and M4 Max option, not an M4 Ultra Option).
It’s anecdotal but I’ve noticed the M3 Ultra Mac Studio pushes a cleaner display output than the M4 Max. I would be surprised if lower power mobile devices like the Air don’t utilize power saving tricks that introduce more noise into the signal than desktop devices that have active cooling and a powerful chipset with more GPU cores. It only seems logical to me given how much of an importance Apple places on battery life these days.