It's not my settings.org file because I created a blank one and it yielded the exact same results. My init file is so small that I don't think it makes any difference:

(package-initialize)

;; Bootstrap `use-package'
(unless (package-installed-p 'use-package)
(package-refresh-contents)
(package-install 'use-package))

(setq package-archives
'(("melpa" . "https://melpa.org/packages/")
("gnu" . "https://elpa.gnu.org/packages/")
("org" . "https://orgmode.org/elpa/")))
;; ("ox-odt" . "https://kjambunathan.github.io/elpa/")))

(require 'org)
(org-babel-tangle-file "~/.emacs.d/settings.org"
"~/.emacs.d/settings.el")
(load "~/.emacs.d/settings.el")

On Thu, Apr 23, 2020 at 10:00 PM Eli Zaretskii <eliz@gnu.org> wrote:

[Once again, please don't reply privately to me alone, please CC the
bug address as well. We want this discussion to be recorded by the
Emacs bug tracker.]

> From: Raoul Comninos <revcomninos@gmail.com>
> Date: Thu, 23 Apr 2020 21:55:15 +0200
>
> Yes, it works with a fresh .emacs. My setup has an init.el and an org file called settings.org. I have pretty
> much isolated everything but cannot get it to work with an init.el file.

So what is in your init.el file, and what do you have in settings.org?
Can you bisect these to find which part there interferes?