Well to back up, visible color banding depends on a few things.
- Our eyes are able to tell differences between dark colors better than bright colors. If what you were looking at in the picture was a video, the settings the video was encoded in may linearly assign brightness values, which makes changes in dark colors stand out more.
- OLED blacks are truly black, which might exaggerate this effect over using an LCD, especially say an IPS panel which has okay black levels.
- Even if you enabled say 10bpp or 12bpp, doesn't necessarily mean the content's color will improve. 3D rendering engines may still work in 8bpp, and their values are simply multiplied to map to the higher color depth.
- The display may also have options to try and smooth out banding to make nice gradients, but this may only be a thing on TVs and not PC monitors.
It'd also help to know what exactly are we looking at in the image you provided for context.