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Interestingly enough, Ubuntu 23.10 enables this by default https://discourse.ubuntu.com/t/firefox-snap-with-wayland-enabled-by-default-in-ubuntu-23-10-mantic-minotaur/38660
Finally. I was having some weird graphical glitches, so I switched it to the Wayland backend, and I've not noticed any issues. It's totally stable (at least for me).
But I have been manually enabling it with a system environment variable and confirmed it was native wayland. No xwayland