Thanks a lot for you help, I can confirm it’s a kernel related issue. According to the post i linked above will be fixed in kernel 5.10.15 so probably won’t take too long.
For anyone else experiencing same issues, this worked for me:
Install rpi-update if you don’t have it installed:
sudo apt install rpi-update
Revert to kernel 5.10.10:
sudo rpi-update 8c2ba64b27a4b6a1dfcd114203c6309f766e2ef4
Reboot to apply the changes:
sudo reboot