Hi John, I've tried Surface Diagnostic Toolkit. Sorry to say it's pretty useless. That said, I didn't initiate a support chat after diagnostic.
Next I ran DISM to scan the health of my Windows Image. No problem.
Likewise SFC is all clear.
I've downloaded and install the latest SP7 driver pack for Win11.
Tried to reinstall Face Hello driver and Touchscreen driver after installing latest SP7 drivers with reboot in between uninstall and reinstall.
After startup, I always get errors for these services, "Cloud Files Diagnostic Event Listener" & "ReadyBoot".
A few hours after using the SP7, I get "SurfaceTconDriver". These are all reproducible after every restart even on build 22000.348.
In addition to these issues and probably similarly related, SP7 doesn't respond to Type Cover open events. The screen doesn't turn on when Type cover is opened. Pressing a key on Type Cover doesn't trigger a Lock Screen open event. Screen only turn on when I press the Power button.