I understand that on your system and theirs. However, something must be different - which is what we’re trying to determine. 
This is a matter of us being completely unable to duplicate this failure.
We have not, at all, but able to get the boot parameter not to work.
For some reason, something, somewhere is different - we need to identify what that is.
We also use this internally for our software devs (they use this parameter on Ubuntu for their laptops).
Now, for you all, you have a workaround that is working and that’s solid.
However, it is critical that folks who happen upon this thread do not believe that this is a hard requirement - it is not unless we can spot what you two have different than what we have on our own systems, and those systems used by our own software team.
We vet and retest to keep our workflows current and as of yesterday, we have found that the grub parameter stands on the 12th gen mainboards tested.
Now, obviously this is an issue…but it’s maddening that we don’t see it here. At all, whatsoever. 
I’d love to get to the bottom of this.
Those affected, can you let me know
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what is connected to your Framework when you tried
sudo grubby --update-kernel=ALL --args="module_blacklist=hid_sensor_hub"and thenreboot. -
Which BIOS release you’re using?
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Which distribution and kernel you’re using?
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Confirm this affecting your 12th gen board?
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While connected to AC power (if so, which charger?)
Some of this will sound absurd, however, we cannot seem to replicate this issue on our end whatsoever - it just works for us - Fedora 38 and Ubuntu 22.04.3.
Appreciate this folks. I will test again, one more time today myself. My tests are detached from everything except AC power.
My next test will be with current release of 22.04.3 - although this also worked when tested on 22.04.2 as well. This will be with current linux-oem-22.04c which is currently 6.1.0.1019.19
Stay tuned, updating shortly.