Hi Long,
Thank you for your fast reply. Disabling all plugins and switching to 2022 theme did work! To pin point what was causing the problem, I activated the theme - tested the form and it still worked. Now it also works with all the plugins active (I did enable plugins one by one after each form test). Looks like it needed some kind of restart.
Thanks again for your fast reply and great insights into this issue.
Regards,
Branislav