Some Pixel 2 and Pixel 2 XL owners say that photos and videos captured in LED lighting using the phone's rear camera end up displaying major banding. It is unclear if a software update could fix the issue, or if it might be a hardware problem. Now, multiple users have encountered a problem with the handset camera performance under the LED light. In any case you can check out the problem for yourself in the video above.
According to Google Forums, Pixel 2 and Pixel 2 customers have experienced unusual image banding in their photos and videos, taken via front and rear cameras with LED flash. Apparently, LED lights do not emit stable light, instead, they let off a flickering light that isn't detectable by the human eye. However if you've ever tried to record a video of a monitor or TV, you might have noticed that effect. On the right is the first Gen Pixel which was recording a smooth and clear video, and on the left is the Pixel 2, with some flickers and image banding.
Until Google comes up with a fix, users will have to live with this issue.