The problem is:
I draw some rectangle on the desktop, while mouse moving(rectangle size increases) I dont have lags, artefacts, etc, All is good:

But when I resize rectangle to lower than it was beed, I have the artefact:

The red rectangle is the real rectangle, all other is the bug.
The perfect solution is redraw the canvas, but I can't do it all time while mouse is moving.
Is there solution to do some when mouse absolute stops after moving?
Update
The code:
    unit Unit2;
interface
uses
  Windows, Messages, SysUtils, Variants, Classes, Graphics, Controls, Forms,
  Dialogs, ExtCtrls;
type
  TForm2 = class(TForm)
    Timer1: TTimer;
    procedure FormMouseDown(Sender: TObject; Button: TMouseButton;
      Shift: TShiftState; X, Y: Integer);
    procedure FormMouseMove(Sender: TObject; Shift: TShiftState; X, Y: Integer);
    procedure FormCreate(Sender: TObject);
    procedure FormMouseUp(Sender: TObject; Button: TMouseButton;
      Shift: TShiftState; X, Y: Integer);
    procedure FormDestroy(Sender: TObject);
  private
    { Private declarations }
    isDown: Boolean;
    downX, downY: Integer;
  public
    { Public declarations }
    Bild: TBitMap;
  end;
implementation
{ Form props: BorderStyle= bsNone AlphaBlend true, 150 Transparentcolor = true, clBlack }
{$R *.dfm}
procedure TForm2.FormCreate(Sender: TObject);
begin
  Bild := TBitMap.Create;
end;
procedure TForm2.FormDestroy(Sender: TObject);
begin
  Bild.Free;
end;
procedure TForm2.FormMouseDown(Sender: TObject; Button: TMouseButton;
  Shift: TShiftState; X, Y: Integer);
begin
  isDown := true;
  downX := X;
  downY := Y;
end;
procedure TForm2.FormMouseMove(Sender: TObject; Shift: TShiftState;
  X, Y: Integer);
const
  cVal = 4;
begin
  if isDown then
  begin
    Self.Canvas.Lock;
    Self.Repaint;
    Self.Canvas.Pen.Color := clNone;
    Self.Canvas.Pen.Width := 1;
    Self.Canvas.Pen.Style := psDot;
    //Self.Canvas.Pen.Mode := pmNotCopy;
    Self.Canvas.Brush.Color := clGreen;
    Self.Canvas.Rectangle(downX, downY, X, Y);
    Self.Canvas.Pen.Style := psSolid;
    Self.Canvas.Brush.Color := clNone;
    Self.Canvas.Unlock;
    { Self.Canvas.Rectangle(downX - cVal, downY - cVal, downX + cVal, downY + cVal);
     Self.Canvas.Rectangle(X - cVal, Y - cVal, X + cVal, Y + cVal);
     Self.Canvas.Rectangle(X - cVal, downY - cVal, X + cVal, downY + cVal);
     Self.Canvas.Rectangle(downX - cVal, Y - cVal, downX + cVal, Y + cVal);
     Self.Canvas.Rectangle(downX - cVal, (downY + Y) div 2 - cVal, downX + cVal,
       (downY + Y) div 2 + cVal);
     Self.Canvas.Rectangle(X - cVal, (downY + Y) div 2 - cVal, X + cVal,
       (downY + Y) div 2 + cVal);
     Self.Canvas.Rectangle((downX + X) div 2 - cVal, downY - cVal,
       (downX + X) div 2 + cVal, downY + cVal);
     Self.Canvas.Rectangle((downX + X) div 2 - cVal, Y - cVal, (downX + X) div 2 + cVal,
       Y + cVal);   }
  end;
end;
function CaptureRect(aRect: TRect; out aBmp: TBitmap): Boolean;
var
  ScreenDC: HDC;
begin
  Result := False;
  try
    with aBmp, aRect do
    begin
      Width := Right - Left;
      Height := Bottom - Top;
      ScreenDC := GetDC(0);
      try
        BitBlt(Canvas.Handle, 0, 0, Width, Height, ScreenDC, Left, Top, SRCCOPY);
      finally
        ReleaseDC(0, ScreenDC);
      end;
    end;
  except
  end;
end;
procedure TForm2.FormMouseUp(Sender: TObject; Button: TMouseButton;
  Shift: TShiftState; X, Y: Integer);
var
  r: TRect;
begin
  isDown := false;
  r.Left := downX;
  r.Top := downY;
  r.Right := X;
  r.Bottom := Y;
  CaptureRect(r, Bild);
  Self.Close;
end;
end.
 
                        
Your problem is that you are painting in the wrong place. Stop painting in the
OnMouseMoveevent handler. Move the painting code to a paint handler. For example the form'sOnPainthandler.Then, in the
OnMouseMoveevent handler, and indeedOnMouseDownandOnMouseUp, callInvalidateon the form, or the Win32InvalidateRectfunction, to force a paint cycle.