UPDATE:
The solution to fixing this issue is to turn off motion blur altogether. The source of the bug isn’t anything to do with what I mentioned previously but more to do with just having a custom material applied to the point cloud. It doesn’t matter if the new material is identical to the default one being used, it will create this flickering, glaring effect.
Just turn off motion blur. I discovered this from learning that the 3D gaussian splat plugin on marketplace is hijacking the point cloud plugin and the creators solution to the flickering issue was to remove motion blur.
I went into another project of mine that uses this point cloud plugin and turned off motion blur and it fixed my issue which caused me to start this thread in the first place.
I hope this comes in useful