I am having an issue with this particular model and aftermarket displays. I have been able to verify the issue on about 40 Acer C740 machines. As part of a school program, students were issued this model Chromebook and frequently break the displays. I have ordered several different "compatible" replacement screens. I have found the screen that was shipped with this machine originally (N116BGE-EA2 Rev.C1) works without issue. However, any of the "compatible" screens do not work. I have tried N116BGE-EA2 Rev.C2 and C3, N116BGE-E32 Rev.C1 none of which work. Unfortunately, I am unable to locate the exact orignal screen anymore and I can only find compatible replacements.
As a test, I noticed if I pull the M.2 drive and attempt to boot, I do not get any video distortion. I have installed a blank M.2 drive, and at the point of restoring ChromeOS(fromUSB) the video distortion shows up (does not show prior to the verification step of the OS installation). This leads me to beleive the issue actually resides in the software and not the hardware, as the issue only shows when booting from an installed ChromeOS for this model. Has anyone else experienced this issue, and is there a recommended fix? The only fix I found so far is to source model N116BGE-EA2 Rev.C1 displays (but I can no longer find this model).