AlxGa1-xN layers with Al-composition above 0.6 (0.6 < x < 0.9) grown under metal-rich conditions by plasma-assisted molecular beam epitaxy on m-plane GaN miscut towards the -c axis are kinetically unstable. Even under excess Ga flux, the effective growth rate of AlGaN is drastically reduced, likely due to suppression of Ga-N dimer incorporation. The defect structure generated during these growth conditions is studied with energy dispersive x-ray spectroscopy scanning transmission electron microscopy as a function of Al flux. The AlGaN growth results in the formation of thin Al(Ga)N layers with Al-composition higher than expected and lower Al-composition AlGaN islands. The AlGaN islands have a flat top and are elongated along the c-axis (i.e., stripe-like shape). Possible mechanisms for the observed experimental results are discussed. Our data are consistent with a model in which Al-N dimers promote release of Ga-N dimers from the m-plane surface.