I am having the exact same issue with the UHD 770.
I have a main monitor connected to my Nvidia RTX 4090, and a secondary monitor to my Intel UHD 770.
When both monitors go to sleep then attempts to wake up, the secondary monitor connected to the Intel UHD 770 won't wake up at all. The main monitor connected to the RTX 4090 will wake up and be active for 3 seconds, goes blank for 1 second, then wakes up again for 3 seconds, and it does indefinitely until I power off and on the secondary monitor connected to the UHD770 to bring it back.
Once the secondary monitor is back up and running, then blanking pattern on the main monitor stops and the computer functions normal again.
I had the same problem. I'm on an Asus Z690 board with an I-9 12900K. I updated my UHD 770 driver to the latest version (.5445) and started having an issue where the monitor connected to the UHD 770 won't wake up. The other monitors connected to my 3090 will be turning on and off until I power off the monitor connected to the UHD 770. I rolled back to the latest driver on the ASUS website (.4824) and the issue went away.