Just tried both the LTS and main kernels and they don't change it for me. I have seen that uninstalling gstreamer-vaapi fixes it but I don't know a safe way to do that. It doesn't have a dependency that I have installed but it is part of the gstreamer meta so pacman squawks about that when I try to remove it.
Found an entry in the bug report on Arch.
https://bugs.archlinux.org/task/76368?project=1&string=gdm
A person solved it by installing the right VA-API driver for his GPU, intel-media-driver. That was also the solution for me and my 11th gen i5 tiger lake. Turned wayland back on in custom.conf and using garuda settings and it works just fine.