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It’s weird that I don’t see moving lines on grey screen
Not weird at all.
Grey screen has no chroma information at all.
Try to boot the RT2x v3.2 in DVI mode by holding 2X/FIL button while plugging the microUSB power cord.
Shouldn’t change how the image looks if the TV handles YCbCr Limited and RGB Full equally well.
Also, seems like the horizontal jailbars BuckoA51 is seeing are not related to the diagonal noise lines you are seeing and the images you’ve posted.
These horizontal interweaved lines are easily fixed by comb filtering, but the diagonal lines you reported look like severe interference.
Can you take a photo (or a hdmi screengrab) of the horizontal lines you see with the C64?
That would help me differentiate between the two noise types.