I connected snubber across the switch and my devices started working although relay was closed, which I was afraid it might happen as they pass through some current, and they are to be used with much higher consumers which don't mind little current flowing through. Live and learn I guess...
So far everything works fine with MOVs and ferrite rings, I moved AC lines further away from the board and PSU and lined them better.
So far my only trouble is when the relay is closed (working) and if I manually switch off one of the devices I get an instant error and arduino freezes.
MOVs are all placed across the switches and one more on the main L&N terminal.
I have also checked PSU and it got a few MOVs, resistors and capacitors where the main lines come in, so it is protected too.
So is there any other solution on how to sort this out or I'll have to live with this and continue without touching manual switches?