Confirmed this is still happening with 4K IPS screens in Ventura 13.5 (Apple M2 Pro/Z17K000BGX/A, LG 27UD68).
Screens are connected to Caldigit TS4 Thunderbolt 4 Dock (DisplayPort connections).
Was not happening up to and including 13.1. Did not test on 13.2, or 13.3. Issue first seen in 13.4.
High priority issue; This defect is causing damage to screens, as screens boot loop forever until user intervenes. The issue only starts after the screens go to sleep, so issue starts after user has walked away, and so often goes unnoticed until returning to find screens have rebooted hundreds of times.
No power settings on the screens resolve the issue. The user has to power down the screens manually to protect them.
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Still not fixed in 13.5.2... Getting really annoying now, and starting to become brand-damaging. The only reason I tried the upgrade was for this issue.
Considering Apple have also cancelled their plans (for now) to release a new Apple Display with a super thin bezel (I need multi-screen setup) means, thin-bezel high resolution screens from LG are still the best option.. And as this issue seems restricted to LG screens, this is starting to look like anti-competitive behaviour!
Apple need to prioritise fixing this, and/or get on with making a new display.