Having a moving image (moving top to bottom) is resulting in weird blue/green pixels over the image.

Try resetting the preferences:
https://community.adobe.com/t5/Premiere-Pro/FAQ-How-to-reset-trash-preferences-in-Premiere-Pro/td-p/8236158

If that doesn't work, try resetting the Workspaces:
Reset a workspace
Reset the current workspace to return to its original, saved layout of panels.
1. Do one of the following:
• Click the Workspace menu icon and select Reset to Saved Layout.
• Choose Window > Workspace > Reset to Saved Layout.
from here:
https://helpx.adobe.com/premiere-pro/using/workspaces.html

If that doesn’t work, try updating or rolling back your graphics driver directly from the video card manufacturer’s site.

No idea what you're asking about. Are you seeing artifacts during playback that disappear on pause? There are settings for resolution during playback (drop-down list in the Program monitor) so that the playback is smoother frame-to-frame, and some artifacts can appear with very low resolutions say 1/4 for playback.

Neil