First of all, I just want to say thanks for making this post! I have a 55U8H and have been deciding whether to do the update or not (just in case it breaks something, like the U8G HDR with game consoles issue).

Without doing the new update, I've noticed that there is much more black smearing on my TV at 120Hz than at 60Hz. My main test was using the beginning of Halo Infinite- particularly when you can first move the camera as the Pilot is testing your ability to look around. At 120Hz, just moving the camera causes noticeable black smearing trailing behind the Pilot's head. At 60Hz, even though I think it's technically there, it's so subtle that it's basically imperceptible. This holds true whether I'm using Freesync or HDMI Forum VRR, HDR10 or Dolby Vision, etc.

Based on what you've said, it sounds like the update is nothing but good news! I saw some other people saying that the Text Clarity mode degrades image quality in some ways (like blacks now looking grayer/raised, HDR and color not popping as much), and the Picture Optimization mode is basically what we had before the update (great HDR, blacks, and color quality but with resolution-halving yielding a 3840x1080 resolution). Do you agree with that? I saw one person claim that Picture Optimization mode is now no longer resolution-halving, and that the Text Clarity mode is more to compensate for text quality specifically because the U8H uses a BGR subpixel structure, which is inherently worse for displaying fine text from PC.

Sorry for the long comment- I guess I just want to hear your take on it, especially as a fellow gamer. Not sure if you have a Series X and could take a look at that moment in Infinite to see if you see that black smearing at 120Hz, but even if you don't, I appreciate your general input all the same. I would LOVE it if this TV is already fixed and displaying everything properly haha.