I was having problems reproducing videos on VLC, the colour channels were shifted.
Example taken from a .mkv video
I figured out that there is a problem with the default hardware acceleration codec (VA-API), not sure if because of the GPU (RX 7900 XTX) or if because I'm using Wayland; regardless if anyone anyone was having similar issues, the fix that worked for me was to manually select either the "VA-API video decoder via DRM" or the "VDPAU video decoder".
To do so, simply go into VLC's preferences > Input/Codecs and from there change in the drop-down menu from "Automatic" to whatever codec works best for you.