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Why is my handwriting distorted on my M2 iPad device?

If you noticed that your handwriting with Apple Pencil seems to be distorted when using your M2 device, you are experiencing an issue which maybe introduced by the Apple Pencil hover feature ("Show Effects"). It is especially noticeable at the end of strokes, where they may appear shifted. It seems to be a system-wide issue which is also affecting other apps as well. While we are investigating this issue, please try to turn off the Apple Pencil hover feature to help with the situation.

Apple Pencil hover is turned on by default, you can turn the feature off by going to device Settings > Apple Pencil and turning off Show Effects when using Pencil, you should then see an improvement on the writing experience.