Studio Display / Mac Studio Compatibility Issue

Starting last week, my Studio Display starts to malfunction, whenever i play any video that has sound in it will cause the video and sound to become choppy and laggy to a point where it is impossible to watch anything.

Everything else is working as long as there is no audio output from the monitor. As soon as i switch the audio output to Mac Studio (sound quality is awful) then everything will work perfectly fine.

I've talked to apple senior advisor on the phone for 2-3 hours, we tried to reset the MacOs, Erase everything on the mac studio, nothing worked, then i disconnected studio display, swapped with another BenQ monitor, everything worked just fine, no lag no choppy videos. so we came to the conclusion it might be a firmware issue with studio display, he said apple is now aware of this problem and is fixing it within, so next update (date unknown) should fix the issue?

Anyone else experienced the same issue?