I am currently running Gnome in wayland and multiple displays with different fractional scaling settings, it works fine. On the other hand in Xorg I can't set different scaling factor for each monitor (at least gnome doesn't allow it), neither can I use fractional scaling.

Does fractional scaling work with Electron programs like VS Code, Discord, Slack, etc? On Wayland? It is a blurry mess for me...

That's GDM's fault, although XRandr doesn't make it any easier to implement.