I wasn’t aware that iMacs were OLED. Not that familiar with PWM but thought it was confined to OLED’s.
Help me learn.
PWM is common on LCD displays. What happens is the backlight is turned on and off quickly to lower the brightness to the level set. The lower the brightness, the more time the backlight is off.
It was not such a problem with the older CCFL backlights as they had an afterglow, so the on/off cycle was not perceptible in almost all cases. But LED backlights do not have the glow, so it can be an issue. If the on/off cycle is not fast enough for the individual (it is wrong to say it is overblown because it doesn't affect the person saying so), the flickering can be perceived (not quite the same as actually seeing it, just being affected by it). The lower the brightness, the greater the off period of the backlight, so the more perceivable it is. The flicker does not have to be matched to the screen refresh rate. Apparently it can vary from 90Hz to 400Hz, so not all PWM screens are the same.
The alternative of lowering the LED voltage is more expensive, can have a shorter lifespan, and is more difficult for getting colour accuracy, so that is why PWM has remained on many monitors.
I used to be affected by the flicker on CRT monitors if they were not set right (I used to turn up the refresh rate to the highest possible so it was not a big issue if it allowed 96Hz or higher). But my frequency of migraines dropped off a cliff as soon as I switched to LCD monitors. That maybe a coincidence as there were other changes about the same time, but it probably helped.
When I got my first LED backlit monitor, I made sure to get a flicker-free model. I wish such information was more freely available from Apple about their screens.