hyprland/waybar/kitty rendering issues

[micmak]

I am trying hyprland on a new installation on a small minipc with intel cpu/igpu. Kitty is configured with transparent background, where the issue is visible when waybar is launched. It starts showing window borders in the background. The same issue can be replicated with alacritty, so I will assume anything with a transparent background.

Pre waybar (transparent background is fine): https://pasteboard.co/Jkgy2alNjGZE.png
Post waybar: https://pasteboard.co/DgzHWXPPqVz1.png

I am not sure if this is the right place to seek help, but I don't see anything wrong in the logs and I couldn't find anything in the Wiki. Any ideas or guidance are appreciated.