What happened to Kerberos Authentication after installing the November 2022/OOB updates?

Its feb2023 and I have problem with this situation. Yesterday I used 'Network security:configure encryption types[...]' in GPO and all hell broke. On my both DC(2016 and 2022) I see event 14. No kb patch from last year is willing to install('not applicable to this machine'). Registry trick with 'ApplyDefaultDomainPolicy' nor 'DefaultDomainSupportedEncTypes' doesnt work. On both dc's in local security 'network security:configure encryption[...]' shows AES128 and AES256 selected only. On dc1 edit on gpo shows 'network access is denied'. On dc2 edit works but when trying to access security settings it shows 'ipsec policy storage container could not be opened. User name or password is incorrect 8007052e'. Even when I set this policy to disabled it does nothing and local security still shows only two aes options checked.

gpupdate on both dc's shows '[...]failed because of lack of network connectivity to a domain controller.[...]Windows could not authenticate to the Active Directory service on a domain controller. (LDAP Bind function call failed).[...]'.
I'm at loss here, do not know what to try else...

Do You have any advice? I will take any help I can...