Quick update: I’m still experiencing disconnection issues when using L535 via Matter. This happens on both Home Assistant as well as when using the bulbs on HomeKit via Apple Home.
The bulbs frequently disconnect for a few seconds and then after a few hours that go completely offline. Only restarting the bulb helps.
I have 3 bulbs and am troubleshooting this currently with TP-Link team. Stay tuned.
For now, I setup the bulbs via Tapo integration (not via Matter) and this seems to work - although the color changing is not as smooth (flashing different colors when turning on with a specific color).