I’m not seeing the flashing/banding, so maybe something glitchy with YouTube?
On the lighting, I think it looks fine. It looks to me like the camera’s focus was mainly on the strings anyway, so the hands are slightly out of focus (depth of field adjustment.) So I don’t think sharpening them up with more light would be good. To me the lighting seems pretty consistent between all of the shots, so I think brightening it up might make those shots stand out too much. Besides, it’s a classical guitar, so somewhat softer, warmer light would be more fitting.
The pauses: I think those are fine as well. When the music pauses, the screen does not immediately go to black. That helps. Just before it does fade out, there is motion (hands moving the guitar.) As soon as the video does fade out, there is text. I understand where you are coming from, but I think there is enough going on that it should be OK.