Yes. That is exactly the same as the backlight behavior on the 436. Let's suppose you set the squelch backlight for 5 seconds. If the scanner receives a 1 second transmission, the backlight comes on at the beginning of the transmission, and shuts off at the end of the transmission 1 second later. If the scanner receives a >5-second transmission, the backlight turns on at the beginning of the transmission, and shuts off 5 seconds later, regardless of how much longer the transmission continues.
AFAIK, Uniden has never offered a backlight option to turn the backlight off some time period after the end of a transmission.
If you're receiving encrypted traffic that the scanner is skipping as as soon as encryption is detected, that could cause the backlight to flicker on momentarily, if the backlight is turned on before the scanner checks to see if the transmission is encrypted. That would explain why people are seeing flickering on digital trunked systems (which can use encryption) but not on analog traffic (where encryption is not supported). It would also explain why other people are not seeing flickering (if encryption is not used on their systems).
If a squelch + time backlight option (turning backlight off n seconds after squelch closes) is added, it needs to ignore skipped encrypted transmissions. Otherwise the user will see the backlight randomly turning on with no indication as to why.
Cue the arguments that such behavior would be a good thing, so you are alerted to encrypted traffic, and should be regarded as a feature, not a bug.