Artifacts while playing RTSP stream when objects are moving (xiaomi stream disabled)

[sagilo]

Here is the midgard.ini file contents:

## Total Disconnection with Xioami Servers	(0,1)
CLOUD_DISABLED=1
## Streaming with Xioami Servers (0,1). Can be used with CLOUD_ENABLED to be able to manage the camera but not streaming outside your network.
CLOUD_STREAMING_DISABLED=1
## Local Streaming. (0,1)
RTSP_ENABLED=1
## Local Streaming config -bBITRATE -fFRAMERATE -wWIDTH -hHEIGHT -mBITRATEMODE
#### BITRATEMODE
#	 1  Constant Bitrate  
#        2  Variable Bitrate  
#        3  Enhanced Constant Bitrate  
#        4  Enhanced Variable Bitrate
CONFIG_LINE=-b4098 -f20 -w1920 -h1080 -m1
## Root password for SSH Server (at least length 8)
SSH_ROOT_PASS=xxxxxx
## DISABLED OTA  (0/1)
DISABLED_OTA=0
## lighttpd on port 8080
HTTP_ENABLED=1
## samba server
SAMBA_ENABLED=1

I can still use the MiHome app to view my camera
RTSP is working but artifacts appear when objects are moving.
Artifacts appear on local NAS server recordings and on MiHome app stream, this is 100% not a connectivity issue.
Another IP camera (Xiaomi Yi Ants) is working perfectly and recording with no artifacts to the same server over the same network.