Hardware failure - GPU / Violent flashing strobe of rainbow disco-ball and white light

I have an Xbox Series X purchased in 2020. When playing some games, especially any/all games utilizing the Unreal 4 Engine, the screen violently flashes with rainbow dots of light, like a disco ball, as well as violent flashes of white light. It renders games completely unplayable. Tested with Outriders, Back 4 Blood, and Deep Rock Galactic. Also, games that do not use the UR4E still cause the issue such as Elden Ring, though it is not quite as violent and those with UR4E.

I have done extensive research and all evidence points to the GPU (failure). I have found those on forums and in the gaming community that have experienced the same issue and say it is a GPU related hardware failure. It is not overly common, but enough to where Microsoft should be aware of the problem. The console has been out for long enough, but any outsourced customer service representative I speak with, because like every industry, it's impossible to speak to an American human being representing the company, they seem perplexed and have no idea what I am talking about. I have another Series X purchased in 2021 that has zero issues which I have also tested with the same games.

To be clear, I have done every troubleshooting step/technique in existence, including a complete factory wipe. I promise, it is nothing that can be resolved without repair/replacement of parts/components. I do not see an option to attach a video file but I have footage of the issue for reference.

Microsoft wants 60% of the cost of a new console ($300) just to diagnose it, which is insane. Why pay $300 for a repair, or if it cannot be repaired, be sent a refurbished model with no warranty, when a new one (with warranty) can be obtained for $500? I believe this should be treated just as the "red ring of death" the Xbox 360 had - no cost for repair due to hardware failure. Who would accept a $500 console that turns into a $800 console due to the unbelievably unreasonable cost of repair? Unacceptable.

:)