How to correct rainbow band distortion from VHS?
 

I have an old JVC HR-S9500U. I'm trying to capture 30-year-old VHS-C tapes using an old SHARP VR-72CA cassette adaptor. My capture device is a REDGO HW007 USB adapter from amazon (https://www.amazon.com/gp/product/B01E5ITE2W), and I'm using an S-video cable and RCA audio cables.
My first capture attempt was way oversaturated and blown out. ("see Attempt 1") I found that if I press stop on the VCR, and then start again after it goes to a blue screen, it fixes the over-saturation, and the picture looks great for a few seconds, but then it starts having this odd rainbow colored distortion appearing in bands across the screen, while the colors of the image look more grey. (see "Attempt 2")
If I pause the VCR, then press play again, it goes back to looking great for a few seconds, before the rainbow distortion bands pick back up again (see "with pausing")

With the remote, I can turn on Jog/Shuttle, and if I hold it at 1x speed, wait for the rainbows to show up, then slow it just momentarily, they go away. Also, the rainbows go away if I FF or REW while playing video.
Does anyone have an idea for how to make these rainbow distortions go away permanently? I've tried changing every setting I can think of on the VCR, including "Video Stabilizer" on/off, "Digital R3" on/off, "S-VHS" on/off, "AV Compu-Link" on/off, "Video Calibration" on/off, and "Timescan Audio" on/off. The only thing that seems to make a difference is the "Video Stabilizer" setting, which seems to cause the rainbows to show up faster when it is turned on.
Stopping playback for a few minutes and ejecting the tape seems to make it so the rainbows stay away longer, almost a minute, than just simply pausing it, which only keeps them away for a few seconds.

Amazon sellers are not always reliable. We need to be sure it's the correct adapter. It should be a JVC C-P7U type motorized adapter that takes 2 batteries.

This is your problem.
That's an Easycap (aka Easycrap, a well deserved nickname).

Classic Easycap crap quality. You need is a better card.
Where are you? NTSC, USA?
What OS?

When you buy a $10 capture device you should wonder what Am I getting for $10, The answer is pretty simple, A fake product that acts like a capture device but missing all the elements of a true capture device that produces a clean stable video signal and uses high quality chips that was designed for the job.

This is actually some of what is happening here. Easycaps mostly use fake/reversed-engineered SAA7113 chips. The actual chips were only so-so in quality, when in capture cards. But the Easycaps chips are Chinese junk that costs a few cents. A huge issue with these cards is the image values are all over the place. Blooming, overexposure, etc.