Updating, I have narrowed down the bug further.

So the settings are not persisted when fractional scaling is used.

If i enable fractional scaling and then change the scaling, display
settings are not persisted across sessions.

If i simply enable fractional scaling, but dont change the scaling
(leaving it at 100%), but change other display settings, like location
of monitors, they are indeed persisted.

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https://bugs.launchpad.net/bugs/1852860

Title:
  Display settings not saved across sessions

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