Have you tried temporarily unconnecting the Elgato and using an HDMI cable for the TV? It looks like either a loose connection or a problem with the cable/adapter.
It was surprisingly the TV, I was attempting to watch Netflix on the actual TV smart app and none of the videos were loading and when that was happening so after I decided to switch to HDMI for my PC and that’s when the distorted image happened. So I ended up rebooting the TV in the settings menu for the TV and it fixed the issue.
So in short my TV had a seizure and just needed a reboot.