The primary reason for this is that you are using Freesync mode.
Freesync is a feature that synchronizes the refresh rate of your TV with the frame rate of your gaming console or PC to reduce screen tearing and stuttering.
However, Freesync also disables local dimming, which adjusts the brightness of different zones of the screen to enhance contrast and black levels.
If you want to use local dimming, you need to turn off Freesync on your TV and use HDMI-level VRR instead.
On the other hand, this issue can also occur if you are using the wrong picture mode.
Some picture modes, such as Vivid or Standard, may not allow you to adjust the local dimming setting.
So check and use a picture mode that supports it, such as Cinema, HDR, or Game.
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