If you fully updated your F35 before upgrade, you shouldn’t be affected by https://discussion.fedoraproject.org/t/selinux-related-errors-when-updating-packages-or-using-certain-tools-after-upgrade-to-fedora-36/73562 . There is a serious problem with nvidia cards mentioned in https://discussion.fedoraproject.org/t/proprietary-nvidia-driver-shows-a-black-screen-instead-of-a-virtual-terminal-or-a-graphical-session/70038 , but I don’t know if it is related to your case. SELinux relabeling shouldn’t have any harmful effect (quite the opposite), but it is possible that something breaks if you have third-party kernel modules installed (nvidia).
It is very suspicious that the rescue mode says /bin/bash: Permission denied and Failed to mount boot-efi.mount.
Try to boot your system with enforcing=0 argument in grub. If you can log in at least using TTY, you can use the updated workaround in https://discussion.fedoraproject.org/t/selinux-related-errors-when-updating-packages-or-using-certain-tools-after-upgrade-to-fedora-36/73562 (first distrosync, then reinstall). If you can’t log in using TTY, you can also use the Everything/Server netinst/DVD ISO image to do an emergency mount into your installed system and get a working prompt that way. You can also schedule a new relabel this way. On a standard system, that should hopefully resolve any SELinux-related issues, but I have no idea whether the nvidia proprietary files won’t badly influence the process 