Why does VS Code give a chip-like / distorted display when I hover over it with my mouse?

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Try disabling hardware acceleration.

From https://code.visualstudio.com/updates/v1_40#_disable-gpu-acceleration

Disable GPU acceleration

We have heard issue reports from users that seem related to how the
GPU is used to render VS Code’s UI. These users have a much better
experience when running VS Code with the additional --disable-gpu
command-line argument. Running with this argument will disable the GPU
hardware acceleration and fall back to a software renderer.

To make life easier, you can add this flag as a setting so that it
does not have to be passed on the command line each time.

To add this flag:

  • Open the Command Palette (⇧⌘P).
  • Run the Preferences: Configure Runtime Arguments command.
  • This command will open a argv.json file to configure runtime arguments. You might see some default arguments there already.
  • Add "disable-hardware-acceleration": true.
  • Restart VS Code.

Note: Do not use this setting unless you are seeing issues! Editor

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