My new device doesn't have this issue so I am satisfied.
Actually that's not 100% accurate. I realized on the new device that if I had on the night clock it would have this problem. As soon as I would wake the phone, before I unlocked it, the screen would be "white washed". I could tell the blacks were not as dark as they should be for example. And if I unlocked the phone while this happened the display would behave exactly as the pictures I originally posted. Night clock is off and everything is 100% correct (don't care about night clock anyway)