Reproduction steps:
1. Create a new 2D URP project
2. In the Hierarchy window, create a new Square Sprite
3. In the Inspector window, set Scale X and Y to 10
4. In Scene View, hover over Square GameObject

Expected result: Sprite does not flicker diagonally
Actual result: Sprite flickers diagonally

Reproducible with: 2022.2.7f1, 2023.1.0b1, 2023.1.0b4, 2023.2.0a2
Not reproducible with: 2020.3.45f1, 2021.3.18f1, 2023.1.0a26

Reproducible on: Ubuntu 20.04
Not reproducible on: Windows 10 Pro 22H2

Note: Flicker area size depends on the dimensions of the Scene view