@Pantherina i use fedora kinoite and yeah it's really awesome! new packages and a safe system.
I wanted to use Fedora CoreOS on my server but no providers offer it so I ended up installing AlmaLinux instead. But yeah the ignition file setup is really painful. tried in a vm but never managed to get everything i wanted. i'm gonna stick with enterprise linux until they make it easier, i think
@Pantherina have you checked if systemd-resolved is working properly and that systemd-networkd or networkmanager is used? only one of them shall be used. i had a similar issue when upgrading from 38 to 39 because then both were active. i'm using NetworkManager on my desktop and disabled systemd-networkd and then it worked..