Rpi goes into kernel panic once LTE USB Dongle is disconnected

Start by reproducing the disconnect and reboot cases with the Raspberry Pi 3 Model B+, Alcatel IK41VE1, and the listed 5.10.103-v7+ kernel. Inspect bug_report.txt and the warning at drivers/net/phy/phy.c:958 alongside the cdc_mbim, USB, and network errors. Done means disconnecting or rebooting no longer causes repeated errors, a kernel warning, freezing, or the need for a power cycle.

Describe the bug

Once LTE USB Dongle is disconnected "nonzero urb status received: -71, wdm_int_callback - 0 bytes" errors are thrown indefinitely.
Raspberry Pi is frozen and it's not possible to reach it until the system is power cycled.

Steps to reproduce the behaviour

1. Connect a USB Dongle to Raspberry Pi 3 Model B+ to any USB
2. Wait until it's connected to the Internet (connection is established by using ModemManager)
3. Disconnect the USB Dongle

Device (s)

Raspberry Pi 3 Mod. B+

System

OS and version:
Generated using pi-gen, https://github.com/RPi-Distro/pi-gen, fa45ccf5a4b183ee566b36d74fb4b65bf9358bed, stage2

Firmware version:
Dec 1 2021 15:07:06
Copyright (c) 2012 Broadcom
version 71bd3109023a0c8575585ba87cbb374d2eeb038f (clean) (release) (start)

Kernel version:
Linux aqueduct 5.10.103-v7+ #1529 SMP Tue Mar 8 12:21:37 GMT 2022 armv7l GNU/Linux

LTE USB Dongle:
Alcatel IK41VE1

Logs

kernel: [ 70.955000] cdc_mbim 1-1.2:1.3: nonzero urb status received: -71
kernel: [ 70.957710] cdc_mbim 1-1.2:1.3: wdm_int_callback - 0 bytes
kernel: [ 71.058078] cdc_mbim 1-1.2:1.3: nonzero urb status received: -71
kernel: [ 71.060809] cdc_mbim 1-1.2:1.3: wdm_int_callback - 0 bytes
kernel: [ 71.602750] ERROR::dwc_otg_hcd_urb_enqueue:501: Not connected
kernel: [ 71.609973] cdc_mbim 1-1.2:1.3: Tx URB error: -19
kernel: [ 71.689118] ERROR::dwc_otg_hcd_urb_enqueue:501: Not connected
kernel: [ 71.696328] option1 ttyUSB0: usb_wwan_write: submit urb 0 failed: -19
kernel: [ 71.707848] ERROR::dwc_otg_hcd_urb_enqueue:501: Not connected
kernel: [ 71.715463] smsc95xx 1-1.1:1.0 eth0: Failed to read reg index 0x00000114: -19
kernel: [ 71.718163] smsc95xx 1-1.1:1.0 eth0: Error reading MII_ACCESS
kernel: [ 71.720804] smsc95xx 1-1.1:1.0 eth0: __smsc95xx_mdio_read: MII is busy
kernel: [ 72.462173] option1 ttyUSB0: usb_wwan_write: submit urb 0 failed: -19
kernel: [ 72.579529]
kernel: [ 72.579553] ERROR::dwc_otg_hcd_urb_enqueue:501: Not connected
kernel: [ 72.579553]
kernel: [ 72.591639] smsc95xx 1-1.1:1.0 eth0: Failed to read
reg index 0x00000114: -19
kernel: [ 72.595558] smsc95xx 1-1.1:1.0 eth0: Error reading MII_ACCESS
kernel: [ 72.599452] smsc95xx 1-1.1:1.0 eth0: __smsc95xx_mdio_read: MII is busy
Aug 2 09:23:32 aqueduct kernel: [ 71.802033] ------------[ cut here ]------------
Aug 2 09:23:32 aqueduct kernel: [ 71.804794] WARNING: CPU: 0 PID: 48 at drivers/net/phy/phy.c:958 phy_error+0x30/0x70
Aug 2 09:23:32 aqueduct kernel: [ 71.807587] Modules linked in: hci_uart btbcm bluetooth ecdh_generic ecc libaes vc4 cec 8021q garp stp llc drm_kms_helper drm drm_panel_orientation_quirks brcmfmac brcmutil snd_soc_core snd_compress snd_pcm_dmaengine syscopyarea sysfillrect sysimgblt fb_sys_fops sha256_generic libsha256 raspberrypi_hwmon backlight cfg80211 rfkill bcm2835_codec(C) bcm2835_v4l2(C) bcm2835_isp(C) v4l2_mem2mem snd_bcm2835(C) bcm2835_mmal_vchiq(C) videobuf2_vmalloc videobuf2_dma_contig videobuf2_memops videobuf2_v4l2 videobuf2_common snd_pcm snd_timer videodev snd vc_sm_cma(C) mc cdc_mbim cdc_wdm option cdc_ncm usb_wwan usbserial cdc_ether fixed uio_pdrv_genirq uio ip_tables x_tables ipv6
kernel: [ 71.826806] CPU: 0 PID: 48 Comm: kworker/0:3 Tainted: G C 5.10.103+ #1529
kernel: [ 71.830315] Hardware name: BCM2835
kernel: [ 71.833764] Workqueue: events_power_efficient phy_state_machine
kernel: [ 71.837233] Backtrace:
kernel: [ 71.840735] [] (dump_backtrace) from [] (show_stack+0x20/0x24)
kernel: [ 71.844326] r7:000003be r6:00000009 r5:c06096d8 r4:c0a73108
kernel: [ 71.847894] [] (show_stack) from [] (dump_stack+0x28/0x30)
kernel: [ 71.851562] [] (dump_stack) from [] (__warn+0xe8/0x110)
kernel: [ 71.855232] r5:c06096d8 r4:c0ac236c
kernel: [ 71.858863] [] (__warn) from [] (warn_slowpath_fmt+0x68/0xd8)
kernel: [ 71.862610] r7:00000009 r6:c06096d8 r5:000003be r4:c0ac236c
kernel: [ 71.866384] [] (warn_slowpath_fmt) from [] (phy_error+0x30/0x70)
kernel: [ 71.870243] r9:ffffffed r8:c190f000 r7:00000005 r6:c0bb7028 r5:c190f318 r4:c190f000
kernel: [ 71.874099] [] (phy_error) from [] (phy_state_machine+0xec/0x224)
kernel: [ 71.878004] r5:c190f318 r4:c190f2ec
kernel: [ 71.881956] [] (phy_state_machine) from [] (process_one_work+0x208/0x4dc)
kernel: [ 71.885968] r9:00000000 r8:00000000 r7:dbf57700 r6:00000000 r5:c18ed6c0 r4:c190f2ec
kernel: [ 71.890088] [] (process_one_work) from [] (worker_thread+0x34/0x594)
kernel: [ 71.894200] r10:c0bc0304 r9:00000008 r8:c0c2bea0 r7:c0bc0318 r6:c18ed6d4 r5:c0bc0304
kernel: [ 71.898307] r4:c18ed6c0
kernel: [ 71.902499] [] (worker_thread) from [] (kthread+0x148/0x15c)
kernel: [ 71.906749] r10:c1117e88 r9:c18ed6c0 r8:c003e058 r7:c190a000 r6:00000000 r5:c18e1cc0
kernel: [ 71.911052] r4:c18e2e80 r3:00000000
kernel: [ 71.915310] [] (kthread) from [] (ret_from_fork+0x14/0x28)
kernel: [ 71.919674] Exception stack(0xc190bfb0 to 0xc190bff8)
kernel: [ 71.923990] bfa0: 00000000 00000000 00000000 00000000
kernel: [ 71.928365] bfc0: 00000000 00000000 00000000 00000000 00000000 00000000 00000000 00000000
kernel: [ 71.932764] bfe0: 00000000 00000000 00000000 00000000 00000013 00000000
kernel: [ 71.937089] r10:00000000 r9:00000000 r8:00000000 r7:00000000 r6:00000000 r5:c0043880
kernel: [ 71.941438] r4:c18e1cc0
kernel: [ 71.945724] ---[ end trace b63e2e5b1bb43148 ]---
Complete logs are in attachments.
bug_report.txt

Additional context

Expected behaviour:
Raspberry Pi continues to function normally.

Note: The issue is also reproducible sometimes during system reboot. (after calling: sudo reboot now)