How can I fix the Studio Display flickering issue?

See attached .gif.

The issue started with minor flickering a few months ago. It has returned at irregular intervals – sometimes weeks apart, sometimes several days in a row – and has gotten worse. Today it looked like this.

• Studio Display (2023) with software version 17.0 (build 21A329).
• The problem occurs with both a MacBook Pro M2 Pro 32 GB (2023) and an iPad Pro (2018).
• It also occurs with different Thunderbolt cables.

What’s wrong? How should this be resolved?

[Re-Titled by Moderator]