I bought a Framework laptop a couple of months back, and installed Arch Linux on it, btw. For some reason, kernel update made the whole system crash, and I had to rollback. I thought it was some driver issues, but turned out it was not! Everything is so much easier than I thought.
I am using LUKS to encrypt my drive. In this setup /boot is a part of the /root partition that is encrypted. A separate EFI partition and /boot/loader content is not mounted when I am logged in the system. When I updated the system with pacman -Syu, the /boot/loader was not there, and bootctl did not update the kernel. I found this today because uname -r returned an old kernel version. This made the whole thing go to hell.
The solution is obvious now, I just had to mount this part of the /boot by sudo mount /dev/nvme0n1p1 /boot and run pacman -Syu after that.