This has been troubling me for 3 days and after scouring the internet and trying multiple suggestions, I have resorted to reaching out to you all from help.

Hardware setup:
- Server: HP Z640 workstation with 2 1GBe ethernet ports.
- Switch: TP-Link TL-SG105E 5-port smart switch.
- WAP1 : TP-Link Archer AX10 AX1500 Wi-Fi 6 Router
- WAP2 : TP-Link AX5400 an old router provided by previous ISP.
- Endpoints_WAP1: Windows and Android
- Endpoints_WAP12: Smart lights, TV, hubs, etc.
Network setup:
- pfSense CE 2.7.1 virtualised on Proxmox CE 8.1.3 running on bear metal.
- NBN modem connected directly to the server and bridges to pfSense.
- pfSense with PPPoE config on WAN port. (no connectivity issues/dropouts at all)
- Port1 of switch trunked with port2 and port3. Connected to the server and bridged to pfSense with correct Vlan tags.
- port2 on VLan20 and port3 on Vlan40.
- port2 connected to WAN of WAP1
- port3 connected to WAN of WAP2
- IP setup:
- LAN: 10.52.0.0/24
- WAP1: 10.20.0.0/24. Set to a static IP both in pfSense and WAP.
- WAP2: 10.40.0.0/24
- DNS is AdGuardHome on pfSense.
- DHCP server is pfSense only.
Issue:
- Devices connected to WAP whether wired or wireless only stay connected for ~5 mins.
- Devices lose all conectivity to internet as well as LAN and other interfaces.
- After 30 secs they get connected again but the connection stays up for 5 mins only.
- This is loop that both WAPs are in constantly for the last 3 days.

Key Points:
- This setup has been working flawlessly for the last 2 months.
- This majorly started to happen after updating pfSense to 2.7.x
- I have tried setting static IPs to the endpoints, still the same. Ruling out DHCP issue.
- I have tried changing the DNS to 8.8.8.8, still the same. Ruling out DNS issue.
- I want to focus on fixing the wired connection for now. I believe wireless will also get fixed.

Workaround:
- Connected an old router to NBN modem.
- Connected server and pfSense WAN from LAN of the old router
- Changed pfSense WAN config from PPPoE to DHCP.
- This is to ensure that pfSense still keeps receiving internet.
- Connected essential devices to the old router for internet connectivity. However, not very happy as they do not go via pfSense or AdGuardHome.

Any help/advice is highly appreciated. Please feel to ask in case I have missed out on any information.
TIA.