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Does turning on »Deactivate Native Canvas« (Photoshop > Preferences > Technology Previews) and restarting Photoshop have any bearing on the issue?
It usually occurs when there is too much display area for the image but there is no sufficient data to view the image.
Pixelation can also occur when you try to convert a low-quality image into a high-quality image.
The error was resolved by updating mac os from 10 to 11.