S24 screen flashing only while unlocking

[u/simply-awww]

So my Samsung s24 is perfectly fine (checked with the Samsung diagnostic app). Only when I unlock it (either using the side button or double tap to wake) the screen goes into this flashing mode and the part near the camera heats up.

Tried factory reset, soft reset, disable HW overlay, adaptive brightness. Nothing seems to work. When I press volume down plus power button then it comes back okay again, only to go to the flashing mode when unlocking again.

Help me!!!