Just a couple of observations and suggestions (
Mavic 2 user since 2019)
1) Flashing to newest firmware does cause problems with the
Mavic 2's, sometimes it is the disparity between the GO4 app version and the firmware version - older flight apps tend not to work well with newer firmwares.
2) Are you using the original RC1A/1B? or the RM500 '
Smart controller'? The original RC's can be linked to the DJI Assistant software via USB-microUSB as a separate component to update to latest firmware version, which you are better off doing.
3) The image breakup you describe is familiar to me. Made the mistake of flashing my Mav.2 Zoom to a firmware above v.**.**.0670 and as soon as I tried putting the bird in the air after the 'upgrade': the control signal was utterly useless on the 2.4-2.48gHz band... I didn't 'upgrade' the Mav.2 Pro and it is still flying perfectly on 2.4-2.48gHz four years later.
Another possible cause is the most pedestrian one: the OTG cable - try buying a replacement.
Last question - how well is the controller holding the battery charge? Can you charge to the full 100%? Afterwards, without use: does the controller substantially lose charge more quickly than it used to? There are two possible causes - your internal controller battery is old and tired - you may need to replace it. The other cause is a chip and resistor malfunction on the main controller board which is
not possible to repair without buying a complete new main board... and they are
expensive.
DJI software and MAC computers aren't the best mix - it would be really useful if you could borrow the use of an old PC/laptop running windows 8 (
or 10). Assistant 2 still works perfectly on my Windows 11 based system and I recently used suggestion 2) to re-flash my original RC1A and RC1B controller firmware (
not update it!!)