Dragster.
Its a software issue.
I have the same hardware on an A4000. Use CGX 4 update 6, its better on that hardware than P96: faster, more amiga-like feel to the pointer movement and icon dragging.
I have seen this before in CGX and I found it was due to saying "yes" to one of the options in the installer, which BTW is the most badly-worded installer in the history of computing. So much so I can't remember what that option was!
But there are some settings in CGXPrefs that you may need to adjust as well
Also I found that a 15/16 bit mode gave the best compromise between memory usage, dithering, speed and stability.