New firmware blooming/flickering/shadow issues.
As others have pointed out, the issue is with the Smart Dimming feature. It is "on" even when it says that it is "off". Access this feature by pressing Menu on the remote, then select Picture, scroll down to More Picture, then turn Smart Dimming from Off to On. Then from On to Off. Your picture should go back to normal.
If you change picture modes, you will have to repeat this process to get your calibrated settings to return to normal. Hopefully just a minor annoyance until Vizio can fix it. No factory resets needed.
If you are just now purchasing this set, do not setup the wifi until Vizio fixes this or you will end up downloading this firmware update and inheriting a new issue with your TV.
Best of luck to everyone.
Last edited by vmiclass02; Yesterday at 08:23 PM.