KDE 6.7 screen goes black after few minutes of usage

Today I applied all the available updates and I saw there was new KDE release. After reboot everything looked fine, I was able to log in, saw nice welcome screen telling that KDE was upgraded. I closed that, started opening stuff and screen went black - it kind of faded out - mostly black, some pixels showing and then slowly disappearing. I needed to perform hard reboot as nothing was not responding. Same issue after reboot - can log in and use things a bit and then same thing - screen goes black.
I was thinking that it might be nvidia thing - turned it off in uefi, so only intel gpu was in use, but still same issue.
I installed xfce as temporary workaround and no issues here. I tried to search around but other black screen issues were different - I can log in fine, can open a browser and open webpages, it just goes black after a few minutes of using it.

Tried KDE X11 session - works fine as well.

Is it a known issue?

I believe this may have been seen with the upgrade from plasma 6.6 to 6.7. I am unaware of any bug report that may have been filed.

Check the system and user journals for error logs.
In the use journal look for logs from kwin.

Seems to be related to i915. There was an error ( [i915] *ERROR* CPU pipe A FIFO underrun) happening and adding this parameter to grub seems to fix the issue: i915.enable_psr=0

Not sure why new KDE version on wayland triggers this.

You could report this to the KDE folks, they may be able to make a fix.
They are actively fixing issue in kwin for example.

There bug tracker is https://bugs.kde.org