Based on the datasheet table 166 can the drive strength for SCL/SDA pin is mentioned to be selected as S0D1 can it be changed to H0D1 drive strength?
Since based on the IBIS model simulation of NRF5340, the S0 output impedance is very high (500R@3V3 and 949R@1V8). This impacts the min pullup resistor value and max I2C capacitance. The output impedance dictates that min pullup needs be >~5000R@3V3 and >~9500R@1V8 for the S0 driver.
This may be too high a pullup resistor for I2C capacitance, or EMI. In which case then H0D1 will need to be used.