There have been a few reports of this flicker and it seems to be all related to the Micro/SLC series PLCs, but I have not been able to replicate here yet. There seems to be a trend with the read optimizing the driver does behind the scenes. In your case, the driver would group the O:8s all in a single read. But then when you add the O:7, it has to do 2 separate reads.
Does it flicker if you only use internal bits and no IO addresses?