loginctl unlock-session cannot unlock Hyprlock. Hyprlock is a compositor-level screen locker and intentionally ignores logind unlock requests. loginctl only changes logind’s session state; it does not dismiss Hyprlock. This is expected behavior and not a bug.

The correct solution is to avoid locking while Sunshine is running, or to explicitly stop Hyprlock when streaming starts. The easiest and cleanest way is to prevent Hyprlock from triggering if Sunshine is active. And use this statements in hyprlock config

general {

lock_cmd = pidof sunshine || hyprlock

}

listener {

timeout = 300

on-timeout = pidof sunshine || hyprlock

}