In short, the problem here is that the display on the Pixel 2 XL will flash when it is locked/unlocked or when it turns on the Always-On Display feature. An insider looked into the Pixel 2's programming and he found that the OLED panel used on the phone is a slightly older version of what is used on the LG V30.
Some commentators claim that even with the "saturated" colour profile, Google's Pixel 2 XL display does not pack as much of a punch, compared to the likes of the Samsung Galaxy S8. Shut my screen off one time and from there on kept happening. "I did reboot in Safe Mode and happened but once I rebooted normally it has not happened again", wrote the user. However, turning off the ambient display does seem to work, at least for now. In some posts, Pixel 2 XL users claim that the issue was seen when powering on the handset.
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Set to replace the "vivid colors" display previously available, Google has rolled out with three new "color profile" options; "boosted", "natural" and "saturated". Along with burn-in, "tearing", and weak oleophobic coatings, another issue is popping up - screen "flashing". But now some users have reported that their non-Pixel devices that were already running on Google Assistant seem to have that functionality already. Users speculate that the issue on Pixel 2 and select Pixel 2 XL units are hardware related.
However, in a recent post, a user shared that they were able to resolve the problem by blowing into the bottom speaker. Multiple other users also confirmed the solution works.