Windows 11 sleep issues

Since disconnecting the KVM and disabling obvious wake devices did not fix it, I would gather one clean sleep trace next. Open Terminal as administrator and run `powercfg /lastwake`, `powercfg /waketimers`, and `powercfg /requests` immediately after the PC wakes itself. Then check Device Manager for the webcam, network adapters, USB controllers, keyboard, and mouse, and clear Allow this device to wake the computer wherever that option is available and not needed. Also review Settings > Accounts > Sign-in options for presence sensing or Windows Hello behavior, because the camera lighting up suggests sign-in hardware may be involved. If the issue started after a specific Windows build, include the powercfg outputs, ASUS firmware level, and monitor/KVM details in Feedback Hub.

Having this same issue with the same windows update. Computer screen goes off when prompted to sleep but wakes to lock screen instantly and the computer doesn't sleep.

Your PC is entering sleep, but something wakes it almost immediately; the webcam activity and KVM-connected input devices make a wake source more likely than a monitor-only problem. After reproducing it once, open Terminal as administrator and run powercfg /lastwake, powercfg /waketimers, and powercfg /devicequery wake_armed. Those commands identify the last wake source, active timers, and devices allowed to wake Windows. Temporarily disconnect the KVM, keyboard, mouse, and dock, then test sleep again. If that works, reconnect one device at a time and disable “Allow this device to wake the computer” only for the confirmed device in Device Manager. Also install ASUS BIOS, chipset, graphics, and camera updates, because Modern Standby behavior depends on firmware and drivers. If no source appears, generate powercfg /systemsleepdiagnostics and review the report. Windows Hello is not a sleep fix; its camera flashing is evidence that the system has already resumed.