SOLVED. After two days of intense debugging I've identified the issue as an interaction between the ICC color profile, integrated GPU, and Photoshop. The ICC profile was created with an i1Display Pro using the i1Profiler software. The issue occurs when you create the color profile using the LUT setting. Creating a profile using the matrix setting seems to be ok. In summary, these are the specific conditions that cause the issue (for me):

1) Using a color profile created with the LUT setting with i1Profiler and i1Display Pro

2) Using the integrated GPU (discrete GPU is disabled in Photoshop Performance setting)

3) Running on Photoshop 13.0.4 (13.0+ all have the issue) on a 15" Macbook Pro with Retina display

Creating a new profile with the matrix setting OR enabling the discrete Nvidia GPU will also make the artifacts go away. The integrated GPU using the LUT based color profile does not seem to have any artifacts in any other photography and video editing software that I've tried so Photoshop is playing a role. The nature of the artifacts also change from Photoshop version 13.0 to 13.0.4. For example, in Photoshop 13.0 the Marquee Tool has no issues while 13.0.1+ has artifacts.

Hello Noel. I've tried using the LUT based profile with the discrete GPU enabled, using Basic, Normal, and Advanced (restarting after each setting). There are no artifacts. Disabling the discrete GPU and using the integrated GPU brings the artifacts back.

I have uploaded the ICC profile to my Google Drive for anyone (hopefully Adobe) who wants to download it to examine the issue further. In OS X the profile needs to be copied to <user>/Library/Colorsync/Profiles. You select the color profile under "System Preferences" -> Displays -> "Color" tab

https://docs.google.com/file/d/0B2PrUeTPoqI6V182dmdPd0ctYTQ/edit

Did you get the same problem using my profile or did you see it with your own profile ?