Touchpad glitches, randomly stops working - especially when trying to use multitouch

After I have updated Manjaro, touchpad started acting up. It works fine until I try to use multi touch, especially 3 finger gestures when it glitches and cannot use for like 10 to 20 minutes when it starts working again.

I’m on wayland using libinput. I have recorder libinput test here youtu.be/wX8levb2o_8

It seems that there is ghost touch being active all the time.

libinput list-devices
Device: DELL0AB4:00 27C6:0D43 Touchpad
Kernel: /dev/input/event9
Group: 6
Seat: seat0, default
Size: 113x77mm
Capabilities: pointer gesture
Tap-to-click: disabled
Tap-and-drag: enabled
Tap drag lock: disabled
Left-handed: disabled
Nat.scrolling: disabled
Middle emulation: disabled
Calibration: n/a
Scroll methods: *two-finger edge
Click methods: *button-areas clickfinger
Disable-w-typing: enabled
Accel profiles: flat *adaptive
Rotation: n/a

description: Notebook
product: Vostro 15 3515 (0AB5)
vendor: Dell Inc.
version: 1.5.0

I tried googling solution, but I’m not skilled enough and I don’t know what to do.

Update:

I have left laptop on suspend for the night and It seems to be working now. Using libinput debug-gui it seems fine, but this is output I get
libinput debug-gui  INT ✘
info: event2 Power Button added
info: event4 Video Bus added
info: event0 Power Button added
info: event1 Lid Switch added
info: event13 Integrated_Webcam_HD: Integrate added
info: event7 DELL0AB4:00 27C6:0D43 Mouse added
info: event9 DELL0AB4:00 27C6:0D43 Touchpad added
info: event6 Dell Privacy Driver added
info: event14 Dell WMI hotkeys added
info: event3 AT Translated Set 2 keyboard added
info: event12 PS/2 Generic Mouse added
info: event5 DELL Wireless hotkeys added
event9 - DELL0AB4:00 27C6:0D43 Touchpad: client bug: event processing lagging behind by 22ms, your system is too slow
event9 - DELL0AB4:00 27C6:0D43 Touchpad: client bug: event processing lagging behind by 21ms, your system is too slow
event9 - DELL0AB4:00 27C6:0D43 Touchpad: client bug: event processing lagging behind by 21ms, your system is too slow
event9 - DELL0AB4:00 27C6:0D43 Touchpad: client bug: event processing lagging behind by 21ms, your system is too slow
event9 - DELL0AB4:00 27C6:0D43 Touchpad: client bug: event processing lagging behind by 22ms, your system is too slow
event9 - DELL0AB4:00 27C6:0D43 Touchpad: WARNING: log rate limit exceeded (5 msgs per 60min). Discarding future messages.
event9 - DELL0AB4:00 27C6:0D43 Touchpad: kernel bug: Touch jump detected and discarded.
See wayland.freedesktop. org/libinput/doc/1.20.1/touchpad-jumping-cursors.html for details

I went to the link provided wayland.freedesktop. org/libinput/doc/latest/touchpad-jumping-cursors.html and recoder touchpad inputs (don’t think I attach file here, but if it’s needed I’ll find a way)