The problem - and the solution - is highly dependent on the plot.draw() function within the Python environment and back end, and may even vary in different product releases. It manifests itself in different ways depending on the environment. The problem shows up in many places on stackoverflow with some solutions working for some people and not for others.
The gold standard on my Windows laptop is running the Python from the command line - no IDE, just plain vanilla Python3. draw() as shown in the example always works fine there.
If I try it in Jupyter notebook on the same machine, no amount of draw(), plot.pause(), plot.show(), or any other suggestion works. I tried %matplotlib with notebook, widget and ipympl. Nothing gets drawn until complete end of cell code execution.
Some other sources on stackoverflow suggested using figure.canvas.flush_events(). I had some success with that and investigated further.
The best solution turned out to be to run the draw() at the figure.canvas level instead of the axes or plot level.
You can get the figure by creating your plot with command:
fig, graph, = plt.subplots()
or, if you've already created the plot, as in the code at the top of the ticket, put the following outside the loop:
fig = plt.gcf() #get current figure
Inside the loop, instead of plt.draw(), use
fig.canvas.draw()
It's proven reliable in my Jupyter Notebook environment even when running multiple axes/plots across multiple figures. I can drop in sleep() statements and everything appears when expected.
Your mileage may vary.