Android 12 kiosk mode - NFC stops working after screen timeout

I have a few devices using the Android Management API and running in kiosk mode.

I have encountered a new issue regarding the NFC scanning after upgrading from Android 10 -> Android 12. After a device restart everything seems to be working fine and if I manually trigger a device sleep by pressing the power button and waking it all is well.

But as soon as the device's display times out and I press the power button to wake it the NFC stops working.

Here are some of the debug logs of the NfcService (the device is unlocked, left for a few seconds and locked again):

2022-09-01 21:12:16.245 2325-2325/? D/NfcService: BroadcastReceiver - SCREEN_STATE_ON_UNLOCKED
2022-09-01 21:12:16.271 2325-2325/? D/NfcService: NfcServiceHandler - handleMessage(MSG_APPLY_SCREEN_STATE) - state: ON_UNLOCKED
2022-09-01 21:12:16.273 2325-2325/? D/NfcService: Discovery configuration equal, not updating.
2022-09-01 21:12:16.442 2325-4028/? D/NfcService: Disabling default Beam behavior
2022-09-01 21:12:16.520 2325-2325/? D/NfcService: BroadcastReceiver - SCREEN_STATE_ON_LOCKED
2022-09-01 21:12:16.520 2325-2325/? D/NfcService: NfcServiceHandler - handleMessage(MSG_APPLY_SCREEN_STATE) - state: ON_LOCKED
2022-09-01 21:12:17.284 2325-2325/? D/NfcService: NfcServiceHandler - debounceRfField() - debouncing RF_FIELD: 0 (cur:0, pol:true)
2022-09-01 21:12:17.284 2325-2325/? D/NfcService: NfcServiceHandler - debounceRfField() - Ignoring, already the current state
2022-09-01 21:12:18.244 2325-2325/? D/NfcService: BroadcastReceiver - SCREEN_STATE_OFF_LOCKED
2022-09-01 21:12:18.244 2325-2325/? D/NfcService: NfcServiceHandler - handleMessage(MSG_APPLY_SCREEN_STATE) - state: OFF_LOCKED

As far as I can see the screen is unlocked but something is triggering the screen to get caught up in a locked state (SCREEN_STATE_ON_LOCKED).

I can confirm this because if I physically hover the device over a NFC tag and unlock it, it immediately scans the tag but after the first second it doesn't work at all.

I have also tried to disable the keyguard programmatically but without any success!

Here is the current active device policy:

{
    "factoryResetDisabled": true,
    "systemUpdate": {
        "type": "WINDOWED",
        "startMinutes": 0,
        "endMinutes": 240,
        "freezePeriods": [
            {
                "startDate": {"month": 8,"day": 1},
                "endDate": {"month": 9,"day": 30}
            }
        ]
    },
    "applications": [
        {
            "packageName": "com.xxx.yyy",
            "installType": "KIOSK",
            "defaultPermissionPolicy": "GRANT",
            "autoUpdateMode": "AUTO_UPDATE_DEFAULT"
        }
    ],
    "funDisabled": true,
    "appAutoUpdatePolicy": "WIFI_ONLY",
    "kioskCustomization": {
        "statusBar": "NOTIFICATIONS_AND_SYSTEM_INFO_ENABLED",
        "deviceSettings": "SETTINGS_ACCESS_ALLOWED",
        "systemNavigation": "HOME_BUTTON_ONLY"
    },
    "tetheringConfigDisabled": true,
    "mobileNetworksConfigDisabled": false,
    "advancedSecurityOverrides": {
        "developerSettings": "DEVELOPER_SETTINGS_ALLOWED"
    }   ,
    "maximumTimeToLock": 0,
    "keyguardDisabled": true,
    "keyguardDisabledFeatures": "ALL_FEATURES"
}

It seems that the issue is similar to these questions:

1. Android 11 - Kiosk Mode Lock Screen NFC Issue
2. Android 10 NFC App - Stops working when phone sleeps while in MS Intune Kiosk Mode

Unfortunately the solutions proposed aren't going to work for my application.

Can anyone recommend a solution or has anyone encountered the same issue?