I've marked this bug as fix released since that appears to be the case.
The issues I mentioned regarding semi-transparent backgrounds seem to be an 
unrelated bug #1780664 in mesa.

** Changed in: linux (Ubuntu)
       Status: Confirmed => Fix Released

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https://bugs.launchpad.net/bugs/1776642

Title:
  Temporal dithering and impaired graphical performance started
  appearing on Intel HD 530 graphics

Status in linux package in Ubuntu:
  Fix Released

Bug description:
  I am experiencing a regression in linux-image-generic-hwe-16.04 with
  Intel HD Graphics 530 (Core i5-6600T), starting in 4.13.0-43
  (considering only kernels which appear in my GRUB menu).

  Some form of spatio-temporal dithering has been enabled. This is
  causing a shimmering effect and visible dithering patterns (like woven
  textile) which are noticeable on photographs and areas of similar
  colour. 1px borders in the UI can appear to have a "marching ants"
  effect.

  The effect is visible under Xorg if the displayed colours are suitable
  to trigger it.

  The effect is also visible in a virtual console (Ctrl+Alt+F1) if
  suitable colours are displayed, but it seems that the presence of the
  effect in virtual consoles predates its appearance under Xorg and the
  reporting of this bug, going back at least as far as 4.13.0-31, but
  with no reason to believe it does not go back further (besides lack of
  testing).

  Reverting from 4.13.0-43 by booting 4.13.0-41 eliminates the temporal
  dithering in Xorg.

  This occurs on a (presumed) 6bpp laptop LCD panel, so dithering is
  necessary, but in previous kernels only a form of spatial dithering is
  applied, which is less visually obvious.

  Concurrent with the temporal dithering, I have also noticed general poor 
graphical performance with the affected kernels. E.g. 50fps and 60fps video 
playback is choppy, sometimes slow redraw and other graphical glitches on UI 
elements. Like the temporal dithering, these additional problems disappear if I 
revert to 4.13.0-41.
  ---
  ApportVersion: 2.20.1-0ubuntu2.18
  Architecture: amd64
  AudioDevicesInUse:
   USER        PID ACCESS COMMAND
   /dev/snd/controlC0:  patrick    1976 F.... pulseaudio
  DistroRelease: Ubuntu 16.04
  EcryptfsInUse: Yes
  HibernationDevice: RESUME=UUID=72e179a8-b27c-42d3-9523-8f1cceacaa64
  InstallationDate: Installed on 2016-09-16 (634 days ago)
  InstallationMedia: Kubuntu 16.04.1 LTS "Xenial Xerus" - Release amd64 
(20160719)
  MachineType: PC Specialist Limited N350DW
  Package: linux (not installed)
  ProcFB: 0 inteldrmfb
  ProcKernelCmdLine: BOOT_IMAGE=/boot/vmlinuz-4.13.0-45-generic 
root=UUID=deeef076-c1e1-47ec-8ee4-d3b56fa179f9 ro quiet splash vt.handoff=7
  ProcVersionSignature: Ubuntu 4.13.0-45.50~16.04.1-generic 4.13.16
  RelatedPackageVersions:
   linux-restricted-modules-4.13.0-45-generic N/A
   linux-backports-modules-4.13.0-45-generic  N/A
   linux-firmware                             1.157.19
  Tags:  xenial xenial
  Uname: Linux 4.13.0-45-generic x86_64
  UnreportableReason: The report belongs to a package that is not installed.
  UpgradeStatus: No upgrade log present (probably fresh install)
  UserGroups: adm cdrom dip lp lpadmin plugdev sambashare sudo vboxusers
  _MarkForUpload: False
  dmi.bios.date: 05/26/2016
  dmi.bios.vendor: American Megatrends Inc.
  dmi.bios.version: 5.11
  dmi.board.asset.tag: Tag 12345
  dmi.board.name: N350DW
  dmi.board.vendor: CLEVO
  dmi.board.version: Not Applicable
  dmi.chassis.asset.tag: No Asset Tag
  dmi.chassis.type: 10
  dmi.chassis.vendor: No Enclosure
  dmi.chassis.version: N/A
  dmi.modalias: 
dmi:bvnAmericanMegatrendsInc.:bvr5.11:bd05/26/2016:svnPCSpecialistLimited:pnN350DW:pvrNotApplicable:rvnCLEVO:rnN350DW:rvrNotApplicable:cvnNoEnclosure:ct10:cvrN/A:
  dmi.product.family: Not Applicable
  dmi.product.name: N350DW
  dmi.product.version: Not Applicable
  dmi.sys.vendor: PC Specialist Limited

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