I discovered the root of the problem!!!

when and if you experience the jitter/jutter/shadows effect I speak of. Open the oculus debug tool in C:\Program Files\Oculus\Support\oculus-diagnostics
and change the asynchronous spacewarp to ASW Disabled!!!! Clearly what is going on here is a frame rate desync/mismatch! The rift is 90 hertz hence why it has the 45fps setting there for async, but the rift s is 80 hertz and thus should be using a 40fps setting!!!! This is a huge oversight by the rift s team and a result of skimping on our hardware and going 80 hertz! After adjusting this setting I have had no further issues other than still needing this USB hub! I am very on the fence about keeping this product or not. It is nice but it is not nice at the same time lol.... But now that I know what is causing it the effect I was seeing actually makes sense too...

So in all fairness, I am on the fence with returning it. It is still doing the static snow flicker and needs the specific usb port and powered hub which is ridiculous, but it's still nice when it is working lol.... but the lack of support and FB censorship issues... I'm really on the fence here.....