I have my wiring setup exactly like this.

While plugged in with or without the battery my screen is perfect. (picture wasn't great, but the screen works perfect) However, for some reason when I go from being plugged in with the micro usb port to running on battery my screen goes crazy. This also happens when freshly booted from the battery.
I tried other things like adding a ground right from the negative terminal on the battery jst connector to my ground strip. I unsoldered and resouldered all of my ground and 5v connections, and I am not seeing any real power loss when I switch from plugged in to battery power.
Voltages are:
5.15 plugged in
5.13 unplugged.
Other than that the transition is flawless, the unit stays powered on and I can still play games.
Anyone have any ideas? Thanks in advance!