Wifi connection disappears shortly after booting on Xiaomi Notebook 13

I've installed Ubuntu 20.04 on my Xiaomi Notebook 13. For some reason wifi connection disappears shortly after I boot laptop (possibly after connection to wifi network, which happens after reboot, I'm not sure). Wifi icon disappears from status bar, also "Wifi" section disappears from laptop preferences.

I've just tried to connect to new wifi network. I turn on laptop (no known wifi networks) and run:

$ rfkill list all
0: hci0: Bluetooth
       Soft blocked: no
       Hard blocked: no
1: phy0: Wireless LAN
       Soft blocked: no
       Hard blocked: no

Then I connected to wifi network (entered password etc), it has successfully connected and shortly after it wifi disappeared (disappeared icon from status bar, wifi from preferences and of course internet connection itself)

I've repeated rfkill:

$ rfkill list all
0: hci0: Bluetooth
       Soft blocked: no
       Hard blocked: no

The output of lspci -knn | grep Net -A3 (after connection is not working):

$ lspci -knn | grep Net -A3
02:00.0 Network controller [0280]: Intel Corporation Wireless 8260 [8086:24f3] (rev 3a)
        Subsystem: Intel Corporation Wireless 8260 [8086:9010]
        Kernel driver in use: iwlwifi
        Kernel modules: iwlwifi, wl

$ uname -a
Linux air 5.11.0-40-generic #44-20.04.2-Ubuntu SMP Tue Oct 6 18:07:44 UTC 2021 x86_64 x86_64 x86_64 GNU/Linux

$ dmesg | grep iwl
[    3.066928] iwlwifi 0000:02:00.0: Found debug destination: EXTERNAL_DRAM
[    3.066934] iwlwifi 0000:02:00.0: Found debug configuration: 0
[    3.067676] iwlwifi 0000:02:00.0: loaded firmware version 36.77d01142.0 8000C-36.ucode op_mode iwlmvm
[    3.177189] iwlwifi 0000:02:00.0: Detected Intel(R) Dual Band Wireless AC 8260, REV=0x204
[    3.183800] iwlwifi 0000:02:00.0: Applying debug destination EXTERNAL_DRAM
[    3.185092] iwlwifi 0000:02:00.0: Allocated 0x00400000 bytes for firmware monitor.
[    3.251551] iwlwifi 0000:02:00.0: base HW address: a0:c5:89:3b:bb:e5
[    3.325233] ieee80211 phy0: Selected rate control algorithm 'iwl-mvm-rs'
[    3.465015] iwlwifi 0000:02:00.0 wlp2s0: renamed from wlan0
[    5.074306] iwlwifi 0000:02:00.0: Applying debug destination EXTERNAL_DRAM
[    5.234285] iwlwifi 0000:02:00.0: Applying debug destination EXTERNAL_DRAM
[    5.360240] iwlwifi 0000:02:00.0: FW already configured (0) - re-configuring

Is there anything I can do? I tried a couple of fixes that I managed to find but none of them has helped. I was successfully using Ubuntu on this laptop, but it was forever ago and I don't remember if I had to do anything special (it was 16.04 I think but idk for sure).

Any input appreciated, many thanks.