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I had the same problem. I am using a laptop with dual graphics card (intel and nvidia) and running gazebo 11 on ubuntu 20.04.

Sun light had no effect, ground was dark and objects had no shadows.

When I was trying to figure if everything is alright with my graphics cards I found that the nvidia x server software is not detecting my nvidia card.

I then changed the nvidia driver from nvidia driver (open kernel), first option in the image below to the one currently selected in the same image, nvidia-driver-525 (proprietary)

I then rebooted my system and everything worked perfectly.

So it could be a driver issue and I hope anyone else still having the same problem will be able to solve it.