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Set AirDrop to Contacts Only or No One on both Macs: Wi‑Fi stutters when AirDrop is set to Everyone.
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Choose a lower quality in the display’s Quality menu, or choose Test Connection… there for a new recommendation.
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Use Ethernet, or a cable between the two Macs. A Thunderbolt cable gives the lossless picture; any cable avoids the stalls of a radio.
Check Smoothness… in Settings › Display measures what the display shows and suggests what to try. Check Smoothness
