@jdelcorr "I was also experiencing the dreaded "kernel panic."
Screen would go dark, with the other half displaying static. Forcing the computer to shut off."
Apparently this is caused by a failure of the Mac and the monitor to correctly negotiate the DSC (compressed data rate) properly.
Later Macs, after the M2-/M3- have a reengineered, lower, DSC rate, so are less likely to behave like this.
TB5 Macs don't need to use DSC at all, so if the DSC handshake fails, then they can instantly recover unto the uncompressed state.
With M2 Pro/Mac chips, a point of failure is that if the Mac's CPU is heavily loaded with opening a CPU/GPU intensive app at the moment the display handshake happens, then the negotiation can fail.
"
...perhaps it's a faulty chip"
The Studio Display's firmware probably need a future update to make the display controller more stable.