Rakly3 thanks for the suggestions.
Found the issue. I had disabled tracking in the quest 2 settings. Once I enabled it, 3d video works again. If I disable, I get the mono flickering images.
If you want to test it to see what the video was like for me, just turn off tracking.
I've had tracking off for a while. Before the update, I had no issues with 3d video.
To me, the boundaries were an inconvenience and with tracking off I could use the headset in low or no light.
Hopefully this will get corrected in a future update.
Thanks once again for the suggestion!