Windows is laggy/glitchy when connected to external monitor

Hello,
I have been using Parallels on an M1 Max Mac (64 GB RAM) for quite some time. While there are always little annoyances like scrolling issues in Outlook/Excel, it has generally worked very well both on the laptop and when connected to external monitors on a dock. Recently, however, it has started showing significant performance issues (laggy, crashing, glitchy - particularly in excel though it may be noticeable there because that's what i use in windows 90% of the time) when connected to my dual 4k external monitors via a thunderbolt 4 dock with thunderbolt 4 cables. I have not changed my setup at all, but these issues have recently presented and I do not know why. If i take the machine off the dock and just use it as a laptop, the glitchy/laggy issues resolve and it acts completely normally.

I have tried changing the view to both "best for retina" and "best for external displays" and both act the same. If i change it to "scaled" then I am having trouble getting the resolutions calibrated and everything on the screen is either very blurry and/or too large and so that's not a useable option.
I have tried deactivating Windows Store (I saw that as an issue on another thread) and I have tried using the recommended CPU/Memory settings and I have tried nearly any combination of custom settings you could imagine (most recently 6 cores and 16 GB RAM) and none of these changes seem to help.

Can anyone help me because at this point, it is entirely unusable and I may need to stop using Parallels and revert back to a Windows machine for work.