That's a different thing. Your eyes automatically filter out the blurry signal during a saccade (ie. while they're doing a fast pan from one location to another.)
Rapidly strobing lights (eg. LEDs being PWM'd) mess with this process and cause you to perceive the intermediate images as your eye moves, leading to some weird visual effects. This was a big thing in the early days of DMD projectors, where they projected sequential red/green/blue frames, and while it looked great when you stared at it, any time your eyes moved the whole image strobed with overlaid RGB fields. (more info: https://www.prodigitalweb.com/rainbow-effect/)
Rapidly strobing lights (eg. LEDs being PWM'd) mess with this process and cause you to perceive the intermediate images as your eye moves, leading to some weird visual effects. This was a big thing in the early days of DMD projectors, where they projected sequential red/green/blue frames, and while it looked great when you stared at it, any time your eyes moved the whole image strobed with overlaid RGB fields. (more info: https://www.prodigitalweb.com/rainbow-effect/)