Xiaomi / Redmi AC2100 packet loss on WiFi after 21.02 (MT7621)

I've been running OpenWrt 21.02.1 r16325-88151b8303 on Xiaomi Redmi AC2100 router for a couple of weeks. I consistently see packet loss of about 3% on the WiFi (observed by pinging the ISPs DNS server using 1024 byte size packets). This happens both on 2.4GHz and 5GHz and I've tried two different clients (my phone and laptop), but have the issue. Video calls on both devices are also not smooth. I have verified that if I ping the same DNS server from the router itself, there's 0% packet loss. The WiFi signal is strong (I have line of sight to the router that's sitting 5-7 meters away).

This issue started after flashing the 21.02 on my router. I was earlier running some older snapshot (I can't remember which) which was working fine.

Anyone else seeing this? Any suggestions on what to try to improve the situation?

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