Screen corruption and artifacts for Intel Arc with both i915 and xe driver (starting with 6.10)

The primary screen of a Dell XPS 14 9440 laptop I am using is showing severe screen corruption and artifacts (lines with random pixel colors) every time the screen refreshes (e.g., typing something in a console or moving the mouse cursor). The corruption pattern is not predictable. Other external screens work just fine. This problem started with an upgrade to kernel 6.10 (mainline). Kernel 6.9.10 (stable) works just fine. Both the i915 and the xe driver show the same symptom.

The problem is likely related to PSR: using the i915.enable_psr=0 kernel parameter fixes it.

The hardware in question (lspci -k):

0000:00:02.0 VGA compatible controller: Intel Corporation Meteor Lake-P [Intel Arc Graphics] (rev 08)
        Subsystem: Dell Device 0c6b
        Kernel driver in use: i915
        Kernel modules: i915, xe

Relevant dmesg output:

[    1.380875] i915 0000:00:02.0: [drm] VT-d active for gfx access
[    1.416872] i915 0000:00:02.0: vgaarb: deactivate vga console
[    1.416910] i915 0000:00:02.0: [drm] Using Transparent Hugepages
[    1.433020] i915 0000:00:02.0: vgaarb: VGA decodes changed: olddecodes=io+mem,decodes=io+mem:owns=io+mem
[    1.442338] i915 0000:00:02.0: [drm] Finished loading DMC firmware i915/mtl_dmc.bin (v2.21)
[    1.558105] i915 0000:00:02.0: [drm] GT0: GuC firmware i915/mtl_guc_70.bin version 70.20.0
[    1.568725] i915 0000:00:02.0: [drm] GT0: GUC: submission enabled
[    1.568729] i915 0000:00:02.0: [drm] GT0: GUC: SLPC enabled
[    1.568943] i915 0000:00:02.0: [drm] GT0: GUC: RC enabled
[    1.574829] i915 0000:00:02.0: [drm] GT1: GuC firmware i915/mtl_guc_70.bin version 70.20.0
[    1.574834] i915 0000:00:02.0: [drm] GT1: HuC firmware i915/mtl_huc_gsc.bin version 8.5.4
[    1.598062] i915 0000:00:02.0: [drm] GT1: HuC: authenticated for clear media
[    1.598427] i915 0000:00:02.0: [drm] GT1: GUC: submission enabled
[    1.598428] i915 0000:00:02.0: [drm] GT1: GUC: SLPC enabled
[    1.598501] i915 0000:00:02.0: [drm] GT1: GUC: RC enabled
[    1.600764] i915 0000:00:02.0: [drm] Protected Xe Path (PXP) protected content support initialized
[    1.608241] [drm] Initialized i915 1.6.0 20230929 for 0000:00:02.0 on minor 1
[    1.642026] fbcon: i915drmfb (fb0) is primary device
[    1.741617] i915 0000:00:02.0: [drm] GT1: Loaded GSC firmware i915/mtl_gsc_1.bin (cv1.0, r102.0.0.1655, svn 1)
[    1.761618] i915 0000:00:02.0: [drm] GT1: HuC: authenticated for all workloads
[    2.827361] i915 0000:00:02.0: [drm] fb0: i915drmfb frame buffer device
[    5.700597] mei_gsc_proxy 0000:00:16.0-0f73db04-97ab-4125-b893-e904ad0d5464: bound 0000:00:02.0 (ops i915_gsc_proxy_component_ops [i915])
[    6.128522] sof-audio-pci-intel-mtl 0000:00:1f.3: bound 0000:00:02.0 (ops i915_audio_component_bind_ops [i915])
[    8.793360] i915 0000:00:02.0: [drm] Selective fetch area calculation failed in pipe A