The same here on Surface Pro 4 i7
Will add additional info in hope it would be fixed sooner. Detailed symptoms: when you drag a cursor it stops until you pull the finger up and put it down on a touchpad again. It usually happens every 5-10 minutes in waves of 10-30 interruptions.
I have SP Pro 4 i7 with Signature Type Cover and installed all the latest updates. Fresh installation of Windows 10 Pro version 1909, OS Build 18363.535.
This issue is 100% gone when I attach the Type Cover from the old Surface Pro 3 or when I attach this SP4 Signature Type Cover to old SP3.
The issue is 90% gone when I'm on battery or using old AC charger from SP3.
Tried reinstalling all drivers related to Type Cover and touchpad.
Tried to play with precision of touchpad.
Tried to switch off "power disabling for energy saving" in Devices Manager for related hardware.
Tried to apply ferrite filters on SP4 AC wire.
Nothing helps so far.
It's a shame so many people having the issue for so long time across different Surface devices and there is still no fix from Microsoft. I had the yellow tint screen issue with my old SP3 and now having this touchpad issues with my SP4. No way I'm buying ANY DEVICE from Microsoft unless they start to fix issues with their devices.