Pi Sugar power button stops powering Pi Sugar as soon as waveshare display is attached

Before I connect my waveshare Eink display holding Pisugar 3 power button lights blue LED and powers the Pi Zero 2. As soon as I connect Waveshare display, pressing and holding that button lights up the green LEDs but never turns on the blue LED or powers it on.

HOWEVER if i press the little circle button in the middle of the Pi Sugar 3 board it does light the blue LED and power on, or if i connect a power cable to either the Pi Sugar or Raspberry Pi.

What is the issue here? can anyone help me fix the power button not working when display is connected?