I'm planning to encode some of my blu-ray discs to AV1 with maximum quality in mind. After thinking I had a good set of settings nailed down, I got sensitized to the topic of banding and found that in certain frames, my encodes were suffering from it quite badly.
I also found the biggest magnet for banding in an animated show: the very first episodes of "The Eminence in Shadow" shows a purple blanket that has crazy banding even at 10-bit with high bit rates.
Here's aom-av1-lavish, the "opmox mainline merge" branch as of November, 14th, 2023 with --arnr-strength=0 --enable-dnl-denoising=0 --denoise-noise-level=1

After seeing that another (x265) encode did it much better and even SVT-AV1 with mostly default settings performed well (see further down), I changed to --arnr-strength=1 --enable-dnl-denoising=0 --denoise-noise-level=6 and what a difference:

Finally, this is the result of SVT-AV1-psy as of January, 22nd, 2024. The settings are --film-grain 6 --film-grain-denoise 0:

So how does one estimate a video's noise / grain level? Do I just develop a feel for which setting corresponds to what look? That might involve quite a bunch of failed encodes, however.
If AV1 noise synthesis "removes" banding, that banding was never part of the video in the first place, but your video player system created it during bit depth reduction, since you're viewing on an 8-bit display. This can be prevented with dithering, which AV1 noise synthesis can substitute for.
save