Grey horizontal patches on my M1 iMac 2021 model

I did purchase this iMac M1 in 2022 February. It was nice to use but since last week some grey horizontal patches appeared in the middle of the screen and it flicker every 5 seconds. Going through many discussions I realised that it may be the display damage or graphic card issues. Saw many similar issues in this community. Can anyone help/advise what is the issue is and how to resolve it? Can Apple take back this system or can repair FOC even it doesn't have the warranty?