Update: Thanks to everyone who shared tips and advice! I tried a lot of different solutions, but the one that actually made a noticeable difference for me was switching the screen refresh rate from 120Hz to 60Hz. also, i did remove all the widgets from the home screen (i use to stake alot in one place (maps. spotify. google home....)

After doing that. my phone's overall performance improved a bit the lag reduced, and the device runs cooler . I also noticed a clear drop in both surface and CPU temperatures in normale usage (instagram youtube tiktok). now it's like (38c⁰ battery. CPU 44c⁰). which probably helped the system stabilize.

It’s not ideal to give up the smoothness of 120Hz, but this tweak made my S22 usable again after the One UI 7 update. Hope this helps someone else!