Here is also a client side log from my most recent attempt.
Server: EndeavourOS (Archlinux) Galileo | Kernel 6.6.5 | KDE Plasma 5.27.10 | NoMachine 8.10.1 forcing H264
Client: Windows 11 22H2 22621.2715 | NoMachine 8.10.1
The server is a virtual machine running on Proxmox. Connecting to a virtual display.
The problem happens with H264. Other Linux based clients are working as expected, but I do not have another Windows client to test with. Using MJPEG or VP8 works as expected.