Good news. Over the course of a few days the proximity sensor fixed itself. I don’t know what happened but it is no longer flickering. I have the original plastic screen protector which doesn’t cover the sensor.
The other good news is I observed some camera sensor turning sound on other devices as well, like the iPhone SE. So this isn’t unique to the Galaxy A53 and it is probably fine for the hardware to do that.
Other than Wi-Fi stability issues, I don’t think there is any other issue. Pretty solid overall.