The lockup seems to be HDMI related, it happens both on LE and RPiOS with latest rpi-update kernel/firmware kernel: drm/vc4: More CPU Stall Fixes · Hexxeh/rpi-firmware@9dbcd6d · GitHub (LE uses the same fw/kernel version as this rpi-update commit) when booting without a HDMI monitor connected.
I already chatted with RPi devs, they'll look at it next week (popcornmix and I also confirmed it still happens with current rpi-5.10.y kernel which contains some fixes in that area).
Concerning LE kernel config changes: it'd be best if you change the panel driver to "y", so it's available right after boot (otherwise you won't get splash and update notifications on screen).
Also drop the gpu_mem change from config.txt (that's not needed and only wastes memory) and you can also drop the vc4-kms-v3d dtoverlay line (that's already in distroconfig.txt).
Better wait with further testing until RPi devs have a kernel fix, serial console won't help too much ATM as you'll only see the kernel is locking up before the vc4 hdmi line should appear (other than that a serial console is really helpful).
so long,
Hias