S3220DGF, WD19TB, noisy distorted at 164Hz (165?)

Hey guys,

My Dell Notebook is Precision 5750 (max out hardware specs). Recently I got myself S3220DGF monitor. My Windows and Dell system is up to date as well as the monitor and nvidia geforce RTX 3000 card.

When I connect S3220DGF to my Precision laptop via WD19TB (I'm using DP 1.4 cable) it gives me three option for Hz settings - 60 / 120 / 164 . Although I don't know why it says 164 instead of 165?

Anyway - at 120Hz is seems the monitor is running all right. I tested Doom Eternal and no issues in terms of flickering, tearing or any other display related issue. Although I sometimes experience little "freezes" while Im dragging windows around in desktop. Its like little jumps or freezes - cant explain it better.

But when I set this monitor at 164 - the display is pretty distorted - it go like this > https://ibb.co/dgVzsdL
https://ibb.co/QNVngmR  

I bought this monitor for the max refresh rate - anyone experienced this issue? Can this be cable related even if this cable is new? Or it can be WD19TB related? But this dock should have enough bandwidth to run it at full Hz as far as am aware. 

In bios I have geforce card enabled for taking care of video outputs.

Thank you very much for any ideas.

K.