I had this issue with 11.0-stable Oct 3, 2026 with a Radeon/Aruba series gpu. I use NetBSD man xcompmgr with simple compositing: xcompmgr -n.
-C When -C is specified, attempts to avoid painting shadows on
panels and docks.
After I added the "C" flag
xcompmgr -nC
I was able to use recommended hardware settings and hardware acceleration when available.
I don't know if other compositors (compiz, xfwm4,....) have the issue, but it would be worthwhile to fiddle with the "shadow" settings and report any success back to this thread.