As a workaround, I'll remove the style attribute from the outlet after opening the dialog

this.dialogOutletRef.nativeElement.querySelector('.igx-overlay__content--modal.igx-overlay__content--relative').removeAttribute("style");

Hello Milko,
I've tried removing the condition but the problem still persists, even when I use a very simple dialog body.
Will get back to you when more findings come up

Hi Milko,
I've been trying to reproduce it in this  StackBlitz but the component is too dependency heavy, I'll get back to you when there is something new.