I also have this problem.
Ubuntu 21.10, Dell 7520 with Nvidia, single monitor HDMI connection.
ps: I do have a logitech mouse with dongle and I did not test if it matters. I 
noticed this behavior about 1-2 days ago.  Previous it did not seem to be an 
issue. Not sure if it's due to an update or a new package.

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https://bugs.launchpad.net/bugs/1841826

Title:
  Going to sleep instead of logging in while lid closed & external
  display

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