Apple Notes app - flashing pencil drawer in the top right corner

After an update to version 26.1 using apple notes just drives me crazy. The pencil drawer in the top right corner blinks shortly after I start to use apple pencil. I use iPad Air M4.

I have created a post on reddit with the recorded screen that explains the issue:

https://www.reddit.com/r/AppleNotesGang/comments/1ows2kn/apple_notes_pencil_drawer_flashing_for_no_reason/

Does anyone knows how to fix this. It draws me insane. It distracts me so much that it's impossible to focus on what I'm writing.