Anyone have this problem?

maxwave....Yes, it has the latest firmware. I agree I should not have the issue, but this is the second MX 123 with the issue. I returned the first unit and got another. I assumed the first unit was defective but now I'm thinking it may be a design flaw. I have spoken with both the dealer and with McIntosh directly and both say they have not heard of this issue. I want to keep it because I am pleased with every other aspect of the processor. I will look to join the avs forum and post the concern there. 
   Regards,
         Steven

It great when no one’s heard of (seen) something that is inplain sight.

Have you tried switching hdmi cables?  I know it sounds dumb and “digital is digital” but just today was trying everything to get a Nintendo switch console working and finally went from the cheap hdmi cable (which I know does work) to an older but very expensive at the time Monster cable and boom, problem solved. 

esthlos13....I switched HDMI cables, I switched the cable boxes, I tried a different HDMI input, but the problem persisted.

I am having the exact same problem guys, has anyone figured this out? For me it works better when I’m using Apple TV as opposed to my Sony television.