It was suggested in one of the replies here:

https://askubuntu.com/questions/1229933/login-freeze-after-update-
to-20-04/1253842#1253842

That installing 5.6 kernel might work. I tried the suggested 5.6.0-1008-oem 
kernel, but
it still required the "nvidia_drm.modeset=1" parameter, without the parameter I 
got the
freeze just like with 5.4 kernel.

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https://bugs.launchpad.net/bugs/1879949

Title:
  NVIDIA GP104 [GeForce GTX 1070] [10de:1b81] Subsystem [19da:1445] Can
  not log in: Failed to acquire modesetting permission

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