Rendering artifacts and frozen screen on Dell XPS 13

Description:

I have a Dell XPS 13 (7930) laptop and I'm experiencing a problem after a kernel update from 6.16.1-arch1-1 to 6.16.3-arch1-1 (the current kernel 6.16.5-arch1-1 is also affected).
When typing in the console the screen displays random noise i.e. strange blocky rendering artifacts with some occasional shifts of the whole screen to the right.
After a while this causes the screen to freeze and keep displaying the current frame buffer content. The underlying system works fine and input is still handled correctly. You can e.g. start a X Session and open programs just fine, but the display keeps being frozen.

When the screen displays renders these artifacts or freezes neither the journal nor dmesg show any signs of errors.

I noticed some new behavior with regards to psmouse but blacklisting the module does not resolve the issue.

Downgrading to kernel 6.16.1-arch1-1 fixes the problem.

Another quirk seems to be that when the screen freezes the displayed artifacts are persistent after a reboot (and power cycling). They disappear after some more reboots.

I have previously created a forum post: https://bbs.archlinux.org/viewtopic.php?id=307968

Additional info:

Steps to reproduce:

  1. Install kernel newer than 6.16.1-arch1-1
  2. Type in Console
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