Issue comes from commit b7dc4f2 in wlroots.
keyboard_interactivewas changed from boolean to enum, however no values are defined for that enum. To fix it, you should replace the file
protocols/wlr-layer-shell-unstable-v1.xmlwith its updated version from wlroots tree: wlr-layer-shell-unstable-v1.xml. Doing that fixed this issue for me.
There is however a new issue that came later, as they removed the enum
wlr_key_statefrom the code, which should then be replaced with
I don't think that Drew Devault is maintaining this project anymore, so you can checkout my fork at ~z3bra/wio, which I just updated to match the latest wlroots release (0.13.0). I'll submit a patch here as well, to try to keep it up to date.
It could be that due to wlroots changes, the compositor must now explicitely enable and commit to an output when running from the VT. I submitted a patch to add this, which now let me start wio from the TTY directly. See https://lists.sr.ht/~sircmpwn/wio/patches/15055