Thanks also discovered this bug and you can downgrade your kernel temporarily to v6.12.4-200.fc41.x86_64
(or any version lower than 6.12.5
apparently).
On Silverblue I found out v41.20241219.0
does seem to contain a working kernel. To downgrade to it follow the Fedora wiki guidelines aka essentially rpm-ostree deploy 41.20241219.0
(after potentially fetching the meta data).