A770 4K blinking artifacts and [drm] *ERROR* Fault errors on pipe B: 0x00000080

Since I moved from 1080p monitor to 4k 160hz I started getting weird glitches like black rectangles for a few frames in the right bottom corner by 1/4 size of my screen or by size half my screen on the right side when playing games. Sometimes I get blinking lines on top. The dmesg only says Fault errors on pipe B: 0x00000080 The thing is that it all is almost completely gone when I switch to 1440p resolution.

Another problem I stumbled upon is a completely black screen when I select 4k 160hz mode, so currently I'm limited by 144hz. The same mode works perfectly in Windows. I think that might be related to Display Stream Compression, since its required for these high settings for dp1.4.

PS I don't know now to name that issue, feel free to rename.

dmesgDRM1.log

My system. I know it shows 1080p, its because of 200% scaling. The monitor is KTC M27P20 Pro

System:
  Host: arch-sopa Kernel: 6.6.3-arch1-1 arch: x86_64 bits: 64 compiler: gcc
    v: 13.2.1 Desktop: KDE Plasma v: 5.27.9 tk: Qt v: 5.15.11 wm: kwin_wayland
    dm: SDDM Distro: Arch Linux
CPU:
  Info: 8-core model: AMD Ryzen 7 5800X3D bits: 64 type: MT MCP arch: Zen 3+
    rev: 2 cache: L1: 512 KiB L2: 4 MiB L3: 96 MiB
  Speed (MHz): avg: 3966 high: 4447 min/max: 550/4550 boost: enabled cores:
    1: 3652 2: 4447 3: 4156 4: 3557 5: 4226 6: 4005 7: 3624 8: 3881 9: 3574
    10: 4219 11: 3937 12: 3559 13: 3946 14: 4426 15: 4080 16: 4169
    bogomips: 108838
  Flags: avx avx2 ht lm nx pae sse sse2 sse3 sse4_1 sse4_2 sse4a ssse3 svm
Graphics:
  Device-1: Intel DG2 [Arc A770] driver: i915 v: kernel arch: Gen-12.7 pcie:
    speed: 2.5 GT/s lanes: 1 ports: active: DP-3 empty: DP-1, DP-2, DP-4,
    HDMI-A-1, HDMI-A-2, HDMI-A-3 bus-ID: 2d:00.0 chip-ID: 8086:56a0
  Display: wayland server: X.org v: 1.21.1.9 with: Xwayland v: 23.2.2
    compositor: kwin_wayland driver: X: loaded: modesetting
    alternate: fbdev,intel,vesa dri: iris gpu: i915 display-ID: 0
  Monitor-1: DP-3 res: 1920x1080 size: N/A
  API: EGL v: 1.5 platforms: device: 0 drv: iris device: 1 drv: swrast
    surfaceless: drv: iris wayland: drv: iris x11: drv: iris inactive: gbm
  API: OpenGL v: 4.6 compat-v: 4.5 vendor: intel v: N/A glx-v: 1.4
    direct-render: yes renderer: Mesa Intel Arc A770 Graphics (DG2)
    device-ID: 8086:56a0 display-ID: :0.0
  API: Vulkan v: 1.3.269 surfaces: xcb,xlib,wayland device: 0
    type: discrete-gpu driver: mesa intel device-ID: 8086:56a0 device: 1
    type: cpu driver: mesa llvmpipe device-ID: 10005:0000