Hope you will have patience with my ignorance on this matter ...so, will the following help?Bit vague on your setup now...
Guess RN7 with ramdisk=no (since launched w/ A9... unless has A/B(?))
So default instructions are install magisk in recovery ramdisk (recovery mode selected)... Zip install can't do this... Did you ever do that (patch recovery.img)?... But being Xiaomi you won't actually need this... Best to patch boot.img (recovery mode un-selected) using M. App and flash...
And I wouldn't use .zip install for your device... It's legacy SAR... May be fine, but zip install is fraught since legacy ramdisk booting devices (any device w/ Launch Version A8 or less, but not updated to A10+)... Whether this could impact on SD card, BT issues etc, I'm not sure, but I'd start again w/ proper patch / flash for SAR / 2SI devices...
You can use Uninstall Magisk from App; Nb. Restore Images leaves android configuration in /data/adb, so you'll want to take Complete Uninstall... (Or, if you first want to test if issue is that magisk.db or other config files are corrupted / causing issues, with root explorer or twrp simply delete everything in /data/adb and reboot and magisk daemon will rebuild config files... You'll have cleanly installed root and modules, superuser, deny lists etc will be gone too...)
For full uninstall you can also delete everything in /data/adb and flash unpatched boot image (recovery.img or boot.img or both these boot images)... If deleting data with root, don't reboot before flashing original boot image...
Issue does sound VERY like a mismatched kernel to me... Often this gives associated hardware issues...
Kernel is in boot image, so this is a common issue where users restore images to take an OTA update (even a minor one), then flash back previous boot image instead of sourcing the ROM corresponding with the OTA to obtain boot.img (or recovery.img) to patch and flash... or simply mix up boot images on the PC... Failing to restore unpatched images before an OTA can cause issues too...
Did you ever use App to patch images? (... Old .zip installation doesn't allow such a mismatch/ user error).
... Remember to treat your Xiaomi SAR A only device as ramdisk=yes for your clean setup, and patch / flash boot.img exactly matching or extracted from current ROM...
PW
1. open Magisk app and select recovery mode and do a direct install
2. then again using Magisk app uncheck the recovery mode and do a direct install
Or will it be just better to uninstall magisk completely, re-install the apk and use boot image patching method? Again, when creating the boot image patch file do I need to select the recovery mode option?
Once again, thanks for your patience. As you can see, I am clueless on how Magisk does its tricks!
EDIT : You are correct, in my case ramdisk=no.