I believed I narrowed down the issue to how gnome-shell uses Xorg.
As said before GDM did not have any issues, and (i may be seriously
wrong here) GDM uses Wayland by default. When I launch the Ubuntu
desktop with Wayland, the graphical issue went away and is running
smoothly.
So I narrowed down
No problem!
When I change wallpapers the issue appears goes away but on reboot or
switching back the issue persists. it appears to not affect other
applications such as Firefox even when in full screen.
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Public bug reported:
problems appear on the desktop and lock screen (not in gdm)
ProblemType: Bug
DistroRelease: Ubuntu 20.04
Package: xorg 1:7.7+19ubuntu14
ProcVersionSignature: Ubuntu 5.4.0-21.25-generic 5.4.27
Uname: Linux 5.4.0-21-generic x86_64
ApportVersion: 2.20.11-0ubuntu22
Architecture:
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