I found out that the culprit might be related to nvidia drivers, but I have no log message to support that.
The SDDM loads on wayland mode normally if the nvidia driver is not installed.
If nvidia driver is installed (latest 550.127), it breaks on boot but works upon systemctl restart sddm.
It can also be a combination of things required for this machine and the nvidia driver.
Welcoming any ideas to investigate this.