Twitch streams from streamlink are messed up in VLC 3.0.4

I am on Arch Linux with VLC 3.0.4. I am trying to open a twitch stream using the command line program streamlink which uses VLC by default (and it is the player I want to use). I expect VLC to displays the streams correctly with its audio, however, I am observing a messed up display and no audio.

I submitted a report on streamlink's issue tracker which lead to the conclusion that the problem was on VLC's end. The report can be consulted here: https://github.com/streamlink/streamlink/issues/2060

As this report says, once streamlink is installed, the issue can be replicated by attempting to launch a currently live stream by using the command "streamlink [twitch] best" where [twitch] is a currently live stream's channel URL (for example: https://www.twitch.tv/twitchpresents ).

I did not get the issue on the previous version I had, it only started to appear when I upgraded to 3.0.4. I am not sure which version I had before, maybe 3.0.0 - 3.0.3 most likely.