You can see the issue in the video below (it is more prominent towards the end of the video). I've tried reinstalling the game and my graphics drivers using amd cleanup utility. This issue appears in a great majority of non pre-rendered cutscenes, not only flashbacks, and is incredibly distracting. This issue also didn't appear in any other Yakuza games, including Kiwami 2 and 6 which run on the same engine.
GPU: RX 6950 XT
CPU: Ryzen 5 5600
Adrenalin version:23.9.1
Resolution and refresh rate: 1440p and 120hz