Updated my V2 and so far so good, noticed it connects to the device much fast where as before it would hang in step 1 for about 5 seconds.
Yea I have it happen on a few cams as well. Seems like some kinda overactive compression.
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That is what I am thinking too.
There are usually many small bugs that are fixed each time that they do not go into detail over, the large ones are usually listed.
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This was addressed in the beta firmware released a few minutes ago. Please let us know in that thread if it works for you.
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The new beta firmware update IEatBeans linked to resolved my pixelation issues on the cams that had it, just like they said it would 
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Issue still exists on all of my V3’s.
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Looks like all my cameras starting with MAC 2C:AA:8E all took OTA fine from 4.9.8.1002 to 4.9.9.1409, restarted, did not forget wifi on restart and reconnected.
Camera starting with A4:DA:22 triggered a restart after OTA and forgot wifi settings while staying on 4.9.8.1002 (did not take update) three times until it finally worked the FOURTH and went to 4.9.9.1409, however, device also forgot wifi settings even after factory reset and re-setup. Flashing back to 1002 now.
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