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What you're describing is actually pretty common with Xbox + high refresh rate gaming monitors and usually doesn't mean the monitor is defective. When you press the Xbox Home button, the console temporarily switches video modes. For example, the dashboard may run at a different refresh rate, HDR state, VRR state, or resolution than the game. When you return to the game, the Xbox and AW2725DM have to renegotiate the HDMI signal ("handshake"), causing the monitor to briefly lose signal and show "No Input" before the picture returns.
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