Yup, and that's because it doesn't have true 120Hz.
If a display is 120 frames per second, you learn the length that each frame needs to be displayed by dividing 1 by 120 which is 8.3 ms. That means each pixel needs to be able to change colors at or before 8.3 ms long or else you don't get true 120 frames per second.
Guess how long the 16" MBP M3 displays a pixel? 75.2 ms (
source).
That means the 16" MBP M3 display is 9x too slow to properly display 120Hz images in motion.
So there's not as much of a difference between MBP and MBA as people imagine. In fact the M3 Air's pixel response is 34.5 ms (
source) where the M3 MBP's is 75.2 ms—twice as slow as a MBA—so no wonder the MBP does nothing for you.
120Hz won't work until Apple implements OLED in 2026 because OLED has a pixel response of less than 1 ms.