Color banding on Valve Index

The latest stable SteamVR update seems to have introduced a color banding/depth issue.



I'm now getting some heavy color banding in low light/foggy environments such as the Half-life : Alyx main menu or when looking at my hands (white gloves) in the default SteamVR home environment.



The issue is also obvious when opening the SteamVR menu.



I'm running an up to date Windows 10 and using the latest stable Nvidia drivers.

The issue is not mirrored to my desktop screen when playing HL: Alyx, so this is likely not a system-wide issue.