Xiao ESP32c3 cannot reconnect to esphome after power cycle

Hi there. I can confirm the same behavior.

The XIAO-ESP23C3 only seems to be started while connected to a pc and start a serial terminal. In my case “picocom /dev/ttyACM0 -b115200” on my Linux pc.
Only then, I can see the divice connects wifi by simply pinging its fixed IP address. I also see all the start and run messages in the terminal.
After exiting picocom the device is still running fine. Both pinging and control by HomeAssistant keeps working. But after a reset by the button on the device or by cycling usb-power it stays unreachable.

So I guess this is just some boot issue. Probably done by control of RTS/DTR when using serial communication.
Does anybody know the secret?

I will attach the esphome yaml file I use for this test:

esphome:
  name: xiaoesp32c3
  #  platformio_options:
  #  board_build.flash_mode: dio

esp32:
  board: seeed_xiao_esp32c3
  variant: esp32c3
  framework:
     type: arduino
     version: 2.0.5
     platform_version: 5.2.0

# Enable logging
logger:

# Enable Home Assistant API
api:
  password: ""

ota:
  password: ""

wifi:
  ssid: "MySSID"
  password: "MyWPA"
  use_address: 10.0.0.119
  manual_ip:
    # Set this to the IP of the ESP
    static_ip: 10.0.0.119
    # Set this to the IP address of the router. Often ends with .1
    gateway: 10.0.0.254
    # The subnet of the network. 255.255.255.0 works for most home networks.
    subnet: 255.255.255.0

  # Enable fallback hotspot (captive portal) in case wifi connection fails
  ap:
    ssid: "HomelabFallbackHotspot"
    password: "anything123"

captive_portal:
#
switch:
  - platform: gpio
    name: "Living Room119 LED"
    pin: GPIO5
#
sensor:
  - platform: adc
    pin: 3
    name: "Living Room119 Temperature"
    update_interval: 60s
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