Clicking on shutdown on my external monitor doesn't shutdown the laptop

I have a setup with my laptop lid closed and only using my main external monitor, and that is the only use case where I have a reproducible issue.

  1. When I click on shutdown on my external monitor, the whole procedure initiates and the external screen turns off and external keyboard turns off as well and all looks good at first. But if I open the laptop lid, I can see that the laptop didn’t shutdown, but is in some strange in-between state (not sleep, not shutdown). The external monitor then goes alive but only with a wallpaper and a moving cursor and nothing can be done, just like on a laptop. I need to press the laptop physical button once to actually shutdown, and can’t really click or do anything else except moving the cursor. Then it shuts down.
  2. If just using the laptop without external monitor, then clicking on the shutdown option works correctly
  3. When the laptop lid is opened and external monitor is connected, then the shutdown click works correctly
  4. systemctl poweroff or shutdown now always work correctly, no matter the use case.

I should mention that I installed Manjaro today and had to upgrade the kernel from 5.15 to 6.0 due to audio not working.

My specs:
OS: Manjaro Linux x86_64
Host: OMEN by HP Laptop 17-cb0xxx
Kernel: 6.0.11-1-MANJARO
Shell: bash 5.1.16
DE: Plasma 5.26.4
WM: KWin
Theme: [Plasma], Breeze [GTK2/3]
CPU: Intel i7-9750H (12) @ 4.500GHz
GPU: NVIDIA GeForce GTX 1660 Ti Mobile