Can you replicate the issue while running the monitor STFC? If yes, then the monitor is defective. If no, then the issue is with either the video card driver, video card, or the cabling.
No the problem does not appear running the monitor STFC. But the weird thing is that when I hit the Auto adjust the image looks fine for a second. I am using the VGA adapter for MacBook and this has been working for 2 weeks and suddenly started to behave like this a couple days ago.