Problem Solved! Here is your answer...Apple is currently promoting and selling a monitor that it full well knows is not compatible with Big Sur. The issue is NOT the Apple Silicon - the issue is Big Sur and LG's incompetence. The current firmware for this monitor is not compatible with Big Sur, the LG Display Manager App is not functioning in Big Sur. LG releases a firmware update in January that it had to roll back because it made the distortion issue worse. Apple blames LG and LG blames Apple. Regardless - Apple still promotes and sells this monitor directly to consumers knowing full well that these issues exists without making any disclaimer. The solution? Well there are three:
1. Stick it out and hope it gets fixed. When you experience the distortion simply unplug the thunderbolt or USB C from the back of the monitor and plug it back in.
2. Return the monitor and get an alternative brand NOT from LG.
3. Wait for yet another class action lawsuit against Apple for knowingly selling defective products and hope you get a share.
Dear Apple: May I suggest you concentrate on fixing issues like this over developing an ever growing amount of Emojis?