If you want to handle all lazy loading by LiteSpeed you need to disable default WordPress lazy loading by adding this line to your functions:
add_filter( 'wp_lazy_loading_enabled', '__return_false' );
Reading this i cant belive it. In my case it is completely opposite situation.
In my agency we switching from Apache + WordPress + other wp cache plugins to LiteSpeed + WordPress + Redis + LS Cache plugin. And there is incredibly page performance boost we dont even expected.
In one on my production-ready project i got:
– all Core Web Vitals passed
– pagespeed score like 90 points on mobile and 100 points on desktop devices
– GTmetrix A grade
– real life DOMContentLoaded: 84 ms | Load: 94 ms
Maybe issue is not in Litespeed but in way you trying to integrate/configurate this in your projects?