Downgrade your graphics driver to one from last October or earlier (FWIW, this issue, which is due to a broken Intel driver, is so common I'd expect that others, especially TileEntity, would immediately recognize the symptoms (screen flashing colors, especially when holding an item, entities are black, various block/texture glitches) by now - the only solution that has worked for anybody is downgrading their GPU driver, or alternatively, make sure that Minecraft is set to use the high-performance dedicated GPU if you have one, which is also a better solution as it the game will also generally run much better and you'll be able to use the latest Intel driver (latest still doesn't mean best - GPU drivers in particular are known for issues like this and many updates are simply bugfixes for issues in various games):
Idk why people in this post are that unhelpful. This is a new bug introduced by latest intel graphics drivers. User u/TheMasterCaver gave me the solution in another post:
Downgrade your intel graphics driver to something older than early this year.
I am now using version 18.104.22.16855 from october 2021 and that actually fixed it.
In the top, you can choose the version. Running the exe takes a while but then the intel installer pops up and checking in your device manager, you should see the current driver version. Hope that helps everyone else.
This also appears to affect all versions which use legacy OpenGL, which wouldn't surprise me one bit as OpenGL 1.x was deprecated 14 years ago (the driver must fully emulate all functions as GPUs no longer have any hardware support for the "fixed-function pipeline"; hence the performance, and even graphical quality, of older versions varies with GPU brand, with NVIDIA having the best support) and the latest versions of Minecraft, which was probably the last major application that still used it, no longer does so, so no wonder such a major bug slipped through (they would never even think to test an older version; Mojang's own bug tracker only accepts the latest release and snapshot).