PHP apache2 LAMP After enabling mod php stopped working

PHP was working fine before enabling mods. I was trying to use rewrite mods. I enabled mods with-

sudo a2enmod rewrite
sudo systemctl restart apache2

Also restarted apache also restarted computer. This is my htaccess file-

RewriteEngine On

#Accept loading of actual files and folders
RewriteCond %{REQUEST_FILENAME}% !-f
RewriteCond %{REQUEST_FILENAME}% !-d

#send everything else to index page
RewriteRule ^(.*)$ index.php?url=$1 [L,QSA]

This is directory I added to conf-

<Directory /var/www/html/folderwithhtaccessfile>
                    Options Indexes FollowSymLinks MultiViews
                    AllowOverride All
                    Order allow,deny
                    allow from all
    </Directory> 
    <Directory /var/www/html/otherfolder>
                    Options Indexes FollowSymLinks
                    AllowOverride None
                    Order allow,deny
                    allow from all
    </Directory>

This is my php file-

<label>hey hey hey</label>
<?php
echo "bla bla bla";
?>

When I run this in browser page Result is -

<label>hey hey hey</label>
<?php
echo "bla bla bla";
?>

It appears php code is not read by php preprocessor and directly served to browser. Also I have adjuscent folders with php code they have also stopped working not just the one with htaccess file. What might be the problem? Any ideas?

Here is conf-

<VirtualHost *:80>
    ServerAdmin webmaster@localhost
    DocumentRoot /var/www/html

    <Directory /var/www/html/folderwithhtaccessfile>
                    Options Indexes FollowSymLinks MultiViews
                    AllowOverride All
                    Order allow,deny
                    allow from all
    </Directory> 
    <Directory /var/www/html/otherfolder>
                    Options Indexes FollowSymLinks
                    AllowOverride None
                    Order allow,deny
                    allow from all
    </Directory>


    ErrorLog ${APACHE_LOG_DIR}/error.log
    CustomLog ${APACHE_LOG_DIR}/access.log combined

</VirtualHost>

# vim: syntax=apache ts=4 sw=4 sts=4 sr noet

Update

I partially resolved my problem by enabling php with-

a2enmod php8.2

Now php is working fine. Javascript is working fine. CSS on the other hand is not working. Files are available and served but no effect can be seen.