This is confirmed for me too.
Vid
And I'm using AMD Radeon HD 7800.

Thank you for marge.

This seems to be a problem with some AMD GPUs (maybe only the Radeon 7000 series).

I have tried to reproduce that issue with my old Nvidia GTX 580 but for me everything is fine (no flashes, no blue trees etc.).

I can confirm that this is an issue with AMD GPUs ranging from the 7000-8000 series
I am using a 8780 2GB and i have the same issue it only began after the LOD blending update and the geometrical occlusion seems to also play a part maybe a combination of the two is the issue

• i do have one remark though couldn't this issue be resolved by adding an option to choose between the new LOD blending or the old model

EDIT: i will create a sub-task feature request for an option to switch between the new and old LOD blending

Actually I would prefer the LOD blending to simply work on all cards (unless it's a driver bug that Bohemia has no control of).

Well that's were this becomes a bit more complicated you see
Scenario A:
If we do not get an option box to choose the LOD blending state and it is driver related

• The fix would be buy a new GPU or computer as there is no possibility of updating drivers for the Radeon 7000 series which crimson does not support

Scenario B: We do get an option box to choose between LOD blending states

• We just use the legacy LOD blending to remove the issue

Additional Info:

• My card and drivers for 8000 cant be updated as my OEM (original equipment manufacturer) has altered the drivers meaning i would damage my computer by updating to the Crimson software

• The AMD Crimson software does not support anything below the 8500M series either so anyone with a 7000 card experiencing these issues will no have no fix other than above

I just upgrade the driver and the problem is gone.

One question
HOW?
the crimson software minimum supported cards are the HD 8000 series?
or is there a new catalyst driver or something?

As I said, I'm using AMD Radeon HD 7800.
And Win 7 x64.

I downloaded it here.
Desktop Graphics> Radeon HD Series> Radeon HD 7800 Series PCIe> Windows 7 - 64bit and go result, download and install.
I think old driver cause the problem. After update the driver, forests are as usual.

on second thought i am now attempting to install the new crimson driver again i hope this works

• The problem i have with the driver updates are even if i complete the install and all components are properly installed no 3d application will work and i have had to do this cycle of pain to downgrade 3 times hopefully this attempt will work

The bottom line has now become if my driver update works i am fine if it does not i wont be able to play Arma 3 anymore unless we get an option box for legacy LOD blending

YES it worked i have done the exact same as you and there is no more flickering blue trees

So far the confirmed fix for AMD GPUs is to update your drivers to the latest Crimson? Software depending on your GPU model

I can confirm updating the video drivers to Radeon Crimson 16.3.2 apparently fixed the issue for me.

So...

• We now have a solution for AMD Radeon Cards, Updating to AMD Radeon Crimson Software 16.3.2