iTunes Scrambled Video Problem

I have the same issue. I have narrowed it down to iTunes purchased content that is protected with their DRM. It does the same thing if you open it in Quicktime. I've seen it on both of my Macs running MacOS 10.13 Beta (17A315i). One is a 2012 13" MacBook Pro and the other is an iMac (Retina 5K, 27-inch, Late 2014). Same version of iTunes. I have not been able to find any logs in Console that would be of any help. Anyone have any suggestions? Non-iTunes content plays fine, i.e. DVD's and other movies I own that I have legally ripped. I should also add that both of my High Sierra installs have been converted to APFS.

I've seen this too. I have purchased the complete TV series Babylon 5 through the iTunes Store. Two episodes (S2E2, "Revelations", and S2E3 "The Geometry of Shadows") do not play correctly; the video is scrambled and unwatchable, but the audio plays just fine. All other episodes of the series play just fine. I don't know if this is the same issue, but it is certainly similar. Note that I purchased these videos before I upgraded to 10.13, and I never downloaded any of them to my disk; I always stream them from iCloud for disk-space conservation reasons.

I just saw this problem on my MacBook Air 13" 2013 model running macOS 10.13 beta 4. All of my purchased content has garbled video playback. Ripped content plays fine.Streaming from iTunes works without issue. It only happens when I download the content.

I just verified. This appears to be fixed in beta 5 that was released today, August 7, 2017.