OK, thank you both!
Currently I am going to upgrade LE 11 Nightly 20211005 on another boot media (USB stick) to 20211015 to test if I fell to the same issue or not. I'll put a result here. I could also try a fresh installation later but I believe it will work at first attempt.
I think my configuration is a bit specific - I am using Live TV / PVR with Astrometa DVB-T2 stick, also the i2c LCD display so some add-ons are also more or less a bit specific. Maybe that's why? Some add-on incompatible with fresh Kodi which couldn't be upgraded automatically without the advancedsettings.xml?
Edit - upgrade another LE 11 from 20211005 to 20211015 stopped with new Kodi picture on screen after the bottom line, informing about add-ons migration, disappeared. Kodi log ends with Waiting message (about 25 minutes ago):
I'll try to reboot to see what happens afterwards.
Edit 2 - after reboot Kodi started without issue and Live TV is working.
Perhaps the original issue could be due the fact when LE 11 Nightly 20211007 was released, add-ons were not compiled yet so the add-on migration did not finish properly and it prevented Kodi from further starts?