NOT FIXED
I tried testing with the Surface Dock and latest firmware / drivers, noticed the computer lagging as soon as it was docked with lid closed, checked Task Manager, and sure enough CPU stuck at .4GHz. Touched it and it was super hot. As soon as I lifted the lid, the fans came on, once it cooled, it seems to be fine. I have a feeling its overheating and the fans should be coming on when the lid is closed. I have reported this to Microsoft so many times, they just don't care.