Here it is openSUSE Paste
I finally fixed the problem!
I did a few steps, not sure which specific one solved it.
(There might be a few typos in the services names)
Yesterday evening I disable the display-manager service. I thought I could disable, then just enable again. Turns out disable deletes the service file.
This morning, I asked AI for advice. While it was very bad advice on some things (like saying I could just type enable for a “disabled” service) it did help me on some things.
I reinstalled lightdm, then enabled and started the lightdm service. I went to the folder where the .service files reside, and the dm service now linked to lightdm.
Still, starting the lightdm service just resulted in having a mouse on a black screen.
Then, finally I decided to run zypper update. I rebooted. Still the same. Then, zypper dup, and I rebooted. It now works correctly.
I am really not sure what fixed the issue. I still am ready to share logs if someone wants to investigate the issue.