After some more research it seems this is actually a kernel display driver bug 
exposed by a recent mesa change.
AFBC is currently broken on mt818* chips but mediatek-drm claims to support it.
It only actually started being used with 
https://gitlab.freedesktop.org/mesa/mesa/-/commit/e0f48568c7f2a638213dee317fde03c23775556f

A temporary fix would be
https://gitlab.collabora.com/mediatek/aiot/linux/-/commit/8f40003af37e1567e53fdfcb6446ab4b90755bc0
which disables AFBC in the display driver.

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https://bugs.launchpad.net/bugs/2103601

Title:
  25.0.1 breaks gdm on panfrost

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