!!!!!!*****SOLUTION*****!!!!!!
After fooling around with tons of different mice/keyboard combinations I found the solution that fixes this issue (it was the one thing I thought to try but forgot to). The issue has to do with your mouse polling rate. My mouse polling rate was set to 1000 in the Logitech software. Dropping it down to 500 fixed any mouse freeze issue on all power settings. This isn't an issue with Surfaces, as if you search for "1000 mouse polling causing freezes", it can happen to any computer.
So if you are experiencing this, you need to find a way to lower your mouse polling rate to 500 or less, which should be in your devices software program. If you don't have a mouse that has software to lower it, you will need to get one that will allow you to do that.