going from 10.12.3 to 10.12.4 introduced issues - scrambled popup windows

[tjgrant]

I'm seeing the same thing; here's Parallels 12 and VLC 2.1.1 being mirrored on the native monitor and the DisplayLink monitor.

In the DisplayLink monitor, both apps show garbled visuals.

I had upgraded the DisplayLink driver to version 3.0 and saw this.
I tried downgrading the DisplayLink driver to version 2.6 and I see the same results.