ESP8266 + TFT SPI ST7796S - Touch and Display not working together

I am trying to get the touch screen and display working on my ESP8266 + TFT ST7796S. However, only one of them works at a time.

Below is my pin configuration:

Below is a working sketch to detect tuch co-ordinates and print on the serial monitor:

#include <SPI.h>
#include <TFT_eSPI.h>     // Uses existing User_Setup.h
#include "XPT2046.h"      // Touch driver

// ---- Touch Configuration ----
#define TOUCH_CS_PIN  D2   // GPIO4
#define TOUCH_IRQ_PIN D3   // GPIO0 (optional)

// ---- Touch Calibration ----
XPT2046::Calibration cal = {
  0.0644197, -0.0003023, -11.8842955,
 -0.0002274,  0.0898521, -14.7727499,
 240, 320, 0
};

// ---- Objects ----
TFT_eSPI tft = TFT_eSPI();
XPT2046 touch(TOUCH_CS_PIN, TOUCH_IRQ_PIN);

void setup() {
  Serial.begin(115200);
  delay(300);
  Serial.println("\n--- ST7796 + XPT2046 Touch Test ---");

  // ✅ Initialize TFT
  tft.init();
  tft.setRotation(1);
  tft.fillScreen(TFT_BLUE); // Fill the *entire* screen blue
  tft.setTextColor(TFT_YELLOW, TFT_BLUE);
  tft.setTextSize(3);
  tft.setTextDatum(MC_DATUM);  // Middle center alignment
  tft.drawString("Hello, World!", tft.width()/2, tft.height()/2);
  Serial.println("TFT Initialized and filled with blue.");

  // ✅ Initialize Touch
  SPI.begin();  // Initialize default hardware SPI
  touch.begin();
  touch.setRotation(1);
  touch.setCalibration(cal);
  touch.setSampleCount(20);
  touch.setDebounceTimeout(100);
  touch.setTouchPressure(3.5);
  touch.setDeadZone(50);
  touch.setPowerDown(true);

  Serial.println("Touch Initialized. Tap the screen...");
}

void loop() {
  if (touch.touched()) {
    XPT2046::Point pos = touch.getTouchPosition();
    if (touch.valid(pos)) {
      Serial.printf("Touch X: %d, Y: %d\n", pos.x, pos.y);
    }
  }
  delay(100);
}

I tried shorting the diode as discussed here.

Need a working code where both touch screen and display works. Thanks a ton in advance!