Actually, the real problems with flying cars (in a setting close to 50 years from now) are more practical than technical. As you say, sufficient portable power sources are not entirely implausible, and with sufficient power you could build a flying car using vertical thrust from relatively compact jet engines. Look at articles about personal air vehicles on Wikipedia (and follow the sources). This would not necessarily mean visible fiery exhaust jets under the car, but there would definitely be a noticeable downdraft (e.g. any nearby loose objects near / under a low flying air car would be blown away).
The practical problems - regulatory, driver skill/training, traffic management, public safety, etc. - would be another matter, at least insofar as "flying car" implies vehicles meant to be driven anywhere at any time (no having to file a flight plan, restriction to approved airports or heliports, etc.), particularly at low altitude in and around cities, and typically by drivers/pilots with no more training or licensing requirements than your typical (ground) car driver. Cyberpunk 2077 seems to be assuming a setting where the regulatory and public safety situation is (at least locally) far more lax than it is in most present-day developed countries, but that only exacerbates the the driver skill issue. The driver skill issue could be reduced by relying heavily on autopilot, AI driver assist, automatic collision avoidance, networked traffic mnagement, etc. However, if these features are easy to bypass or turn off, vast number of overconfident idiot drivers who really shoudn't do so inevitably will, because people are like that, with disastrous results.
Conversely, if these systems are not easily to disable, then the flying cars are reduced to flying taxis (i.e. not really controlled by the "driver" beyond entering a destination). That might be fine for the ordinary citizen, but it makes chases, dogfights, fly-by shootings and similar forms of excitement generally impossible. Special unrestricted models might be available to police and government types, but not for (most) private citizens, and any unauthorized aircar operating "off the rails" would be immediately assumed criminal (partly for the licence violation, mostly for suspicion that they must be up to no good). And on the mean streets of cyberpunk dystopia, that could very quickly lead to getting blown out of the sky or having about 50 cop cars hot on your tail.