Pretty much every company that tries to capture the environment around it uses a probabilistic model that takes in the raw sensor data and makes predictions about things in the surroundings. The random blinking you see on the Tesla screen is essentially saying that Tesla's model prediction confidence is borderline and changing from instance to instance. Is that great? No, but they can't do much using just vision data. What's the alternative? Show the cars even when your model is not confident anymore just for user experience reasons and give false sense of confidence? That's not ideal either.

Imo I don't know any other consumer car company that shows anything like that on their cars infotainment console. Companies like Waymo and Cruise do a much better job at capturing surroundings but they are in a different market where it makes sense to spend a ton of money on each car to add many LiDARs and significant compute in the car.