iPhone 5 strange artifacts while picture is changing...

I received this iphone 5 from friend. I tunes recognise it, and if it asks for itunes or charging icon the image is not distorted...But, as you can see in the images attached, i made recovery without error, and when it starts while iphone is running it creates random artifacts...the letters are also distorted, and mixed up... it seems when iphone is trying to change pictures on the lcd that there is some error, and part of the screen changes what it shows and other part shows something else. I used lcd on other iphone and lcd seems fine... I figured that it is probly some filter on motherboard, but which one?

Here are the pictures of whats going on, thank you in advance for the answers...

And here is the possible shorts, but which one?