I am running Monterey (12.5.1) on my 2019 MacBook Pro 16" (Intel i7 based, 6 core) and for the last couple of weeks, I am seeing the wallpapers (which is set to "custom folder" and enabled to change "every min") distorting to different levels of grey-outs on the wallpaper. I have an additional screen hooked up and this happens on either of the screens randomly. I have tried unplugging the external monitor but still this issue persist on my MacBook Pro screen randomly.
A screenshot is attached for your reference.
Yes I've restarted and yes everything on this computer is updated daily. Any idea what could be causing the issue and hopefully someone knows the fix to this issue?