I haven't found a foolproof solution to the flickering issue, but I have figured out a lot about what it's deal is.
Simply put, at least on the NVS 3100m, the flicker goes hand-in-hand with SVP using more GPU utilization than it should, and unfortunately this seems to occur almost randomly (seemingly triggered by specific video files or something that don't really always have anything in common).
I had a situation where the flicker was occurring on a specific video, I only changed SVP to "repeat frame", relaunched the video, and the flicker was gone; GPU utilization was around 50%. I changed SVP back to "blend adjacent frames", relaunched the video, and the flicker was back; GPU utilization was around 85%. So I set SVP to "repeat frame" again, launched the very same video one more time, and the flicker was still there; GPU utilization was still around 85%.
Normally I'm able to do x3 interpolation on 20fps videos...though definitely not with the flicker/high-GPU-load issue. Now what was interesting is that, when the flicker/high-GPU-load issue was occurring, I was able to greatly reduce the flickering by setting SVP to do only x2 interpolation which, as we all now know, reduces the GPU utilization; sure enough, the resulting GPU utilization was only around 80% (was ~95% with the flicker issue @ x3, no idea what GPU load at x3 without the flicker issue is). To add weight to this theory, reducing my GPU's shader clock not only increased the GPU load resulting from SVP but also increased the amount of flickering.
This makes me wonder if people with powerful GPUs never notice this issue of higher-than-normal GPU utilization because on something like a Fury X it could simply be the difference between 10% and 12% GPU utilization; this could very well explain why I seem to be on my own here even though I've ran into this issue on two very different combinations of PC hardware...though now that I think of it, both PCs have one thing in common - relatively weak GPUs.
EDIT: Haha, seemingly random is right. The above-attached "problematic" MP4 that was always triggering the flicker issue when I made my previous post is working perfectly fine. However I've now run into another video that keeps having the issue, but I think I've found a repeatable method of making it go away for at least a single video-playback session:
hit "stop" in MPC-HC, close MPC-HC; re-open the video - assuming resume is enabled, it should resume playing right where it was stopped but without any flickering and with normal GPU utilization.
EDIT 2: I think I may have finally solved the flicker issue once and for all, but before I say what it is that I did, I would prefer to give it a few days worth of testing before we jump to any final conclusions.
Nevertheless, I would recommend to any SVP devs to not bother spending any time on this issue and/or with my bug reports until after I can confirm/deny whether or not I have in fact finally figured out what solves it - otherwise you devs may very well just be wasting your time chasing a dead end.