Terminology doesn't work on default GNOME (won't launch on wayland if xwayland installed)

Terminology won't work on default gnome under wayland if xwayland is running. It works if xwayland is removed tho, weird eh? Anyways to make it work now launch with
DISPLAY= ELM_DISPLAY=wl terminology

but I assume this is a bug.

I also tried it in TTY and didn't work there either, but didnt figure out workaround for that.

ProblemType: Bug
DistroRelease: Ubuntu 22.10
Package: terminology 1.12.1-2
ProcVersionSignature: Ubuntu 5.15.0-27.28-generic 5.15.30
Uname: Linux 5.15.0-27-generic x86_64
ApportVersion: 2.23.0-0ubuntu1
Architecture: amd64
CasperMD5CheckResult: pass
CurrentDesktop: ubuntu:GNOME
Date: Sun Aug 28 12:22:51 2022
InstallationDate: Installed on 2022-08-03 (25 days ago)
InstallationMedia: Rolling Rhino Remix
ProcEnviron:
 TERM=xterm-256color
 PATH=(custom, no user)
 XDG_RUNTIME_DIR=<set>
 LANG=en_US.UTF-8
 SHELL=/bin/bash
SourcePackage: terminology
UpgradeStatus: No upgrade log present (probably fresh install)