Screen flickering with horizontal/vertical lines on MacBook Air M1

I have a MacBook Air M1 and recently the screen sometimes flickers with horizontal/vertical lines. It usually happens right after startup or randomly while using the Mac. Restarting sometimes makes it go away, but it keeps coming back.

I also ran Apple Diagnostics and it showed a possible adapter issue, even though I tried using another charger.

Has anyone else faced this issue on the M1 Air? Could this be related to the display cable/screen, or is it a power adapter/logic board problem? Should I contact Apple Support for repair?

Any advice or similar experiences would be really helpful. Thanks!

[Re-Titled by Moderator]

Original Title: Screen Flickering Issue