M1 Ultra won't sleep properly (Fan goes off but OS/CPU continues to work!)

Its a bit crazy, my one week old M1 Ultra won't really sleep.... The fan goes **off** but the CPU and OS continue to run. You can even feel it as after a couple of hours; the case becomes quite hot. You can see it from the screenshots. The times during the week that the system was "sleeping", CPU temp is going up, CPU is not inactive and fans are off. No app seems to be "preventing sleep;” (image attached) WiFi Off, Ethernet network only. How do I debug this? Any ideas?