Hi Trev,
This looks like posterization. Posterization is always caused by insufficient numerical precision to represent a smooth gradient, and may be a real problem or just a screen rendition artifact. Smooth gradients such as DBE background models or master flat frames require a 32-bit format to be represented correctly (sometimes even more).
For example, if you store a DBE background model in 16-bit integer format, most likely this will lead to posterization, since 65536 discrete values are not sufficient to describe the extremely smooth gradients as apparent continuous functions.
On the other hand, even if the master flat frame is a 32-bit image and it represents its gradients with enough precision, its screen rendition will be posterized since the screen is an 8-bit device. Of course, the same happens when you convert a 32-bit master flat frame into an 8-bit JPEG or PNG image, as the case of the stretched version you have attached before.
Hope this helps.