I have logged a ticket with Microsoft support through the Surface App. I have gone through all the steps that have so far been suggested and have also provided them with a recent bug report.
I am also in the process of working through a similar support request with Google and they are also looking into the issue to see if it's related to the Google Wallet application. Based on other Surface Duo 2 owners facing a similar issue with contactless payment, it looks as though this is something the Microsoft needs to fix on their end.
I urge others having similar issues to do the same to ensure that this gets the attention that it requires.
I am not confident in Microsoft providing duo engineers the time to work on the phone based on their inability to get security updates out on time or any meaningful new features added anymore. There have been reports that the team working on it were transferred to Android for Teams projects. This is Windows Phone all over again and simply not good enough for a plus $2000 flagship handset with over a year of updates left.