S2417DG, horrible color banding

We need more information before we can start to troubleshoot...

* PC model
* PC video card (It must be an Nvidia video card to use G-SYNC and Overclock)
* PC video card ports
* PC operating system
* How is the LG monitor 1920x1080 FHD connecting to the PC video card using which ports and cable?
* How is the S2417DG 2560x1440 QHD connecting to the PC video card using which ports and cable?
* Have you reset the S2417DG to Factory Settings, page 34, then retested?

Here is the information you asked for-

-Computer is Custom built (i7 7700K, 8gb ddr4, Asus Z270 Tuf MARK 2, GTX 1060 3gb by MSI, 500gb Samsung ssd.

-The card is an MSI GTX 1060 3gb version running at stock speeds.

-x1 Dvi, x1 HDMI, x3 Display Ports.

-Windows 10 Home 64-bit

-The LG monitor is connected via HDMI

-The Dell monitor is connected via Display Port

And yes, I have reset all of the settings on the display and restarted the computer multiple times. No difference.

* Turn the PC and both monitors off
* Disconnect the LG monitor HDMI cable from the GTX 1060 HDMI out port. This leaves only the S2417DG connected to the GTX 1060 DP out port
* Turn the S2417DG on, then the PC

Install the latest Nvidia WHQL driver
* Uninstall GeForce Experience
* Restart the PC when done
* Download/Save the latest Nvidia WHQL driver to your Windows Desktop
* Right click the file and select "Run as administrator"
* Click OK
* Click Agree and Continue
* Click Custom (Advanced)
* Click Next
* Check the following =
Graphics Driver
3D Vision Controller Driver
3D Vision Driver
HD Audio Driver
PhysX System Software
Perform a clean installation
* Click Next
* When done, click Restart Now

* Press the S2417DG Menu button
* What does it state at the bottom by "Resolution:" ?

Enable G-Sync in the Nvidia Control Panel
* Right click on the Windows desktop and select "NVIDIA Control Panel" or launch the "NVIDIA Control Panel" application from your Start menu
* Open Display
* Click Setup G-Sync
* Check Enable G-Sync
* Insert the dot to, "Enable G-Sync for windowed and full screen mode"
* Click Apply
* Under 3D Settings, click Manage 3D Settings
* Highlight Monitor Technology
* Choose G-Sync
* Click Apply
* Close the the Nvidia Control Panel

Enable G-Sync in the S2417DG
* Press the S2417DG Menu button
* Go to Display
* Go to Overclock and Enable it
* Go to Overclock Refresh Rate
* Choose 165Hz
* Click Yes

* Press the S2417DG Menu button
* What does it state at the bottom by "Resolution:" ?

I have followed all of your steps listed above.

-After I restarted the computer with the new Nvidia drivers I clicked the menu button on the monitor to see the resolution tab and it said the following: 2560x1440, 60Hz G-SYNC Mode 

-After I set up G-SYNC I checked the resolution tab again and saw now difference at all.

Also the banding problem hasn't went away or changed at all after new drivers.

This thread was not locked, so not sure why you could not reply to it? Anyway, moved your reply over here.

2560x1440, 60Hz G-SYNC Mode ?

What happens when you change to the other Hz (85/100/120/144/150/155/160/165) ? Does it look any better?
* Go to Display
* Go to Overclock and Enable it
* Go to Overclock Refresh Rate
* Choose a Hz other than 60

Since I cannot go lower than 144hz using the internal display settings, I went to the nvidia control panel and lowered the hertz there, I started from 24hz and moved my way up all the way to 165hz with the display overclock enabled and set to 165hz. Then I turned the overclock off in the display settings, went back to nvidia control panel and tested all of the hz modes again. After doing both tests I noticed no difference once again, I'm starting to think its not a software problem but maybe the panel its self is defective?

Color banding or contour lines appearing on Dell S2716DG, S2417DG or S2817Q monitor