Funny, I was doing something and got a blue screen shortly after posting that and my Surface did the first two updates during the restart. Used the pen and had the issue again.
Error:
Faulting application name: dwm.exe, version: 10.0.19041.746, time stamp: 0x6be51595
Faulting module name: HeatCore.dll, version: 0.0.0.0, time stamp: 0x54ab4a1a
Exception code: 0xc0000409
Fault offset: 0x0000000000035b5d
Faulting process id: 0x3f4c
Faulting application start time: 0x01d71aa575b73c6e
Faulting application path: C:\WINDOWS\system32\dwm.exe
Faulting module path: C:\WINDOWS\system32\HeatCore.dll
Report Id: 32c0853a-eb8c-418f-bf07-bf1189c89608
Faulting package full name:
Faulting package-relative application ID:
Warning:
The Desktop Window Manager process has exited. (Process exit code: 0xc0000409, Restart count: 2, Primary display device ID: Intel(R) Iris(R) Plus Graphics)
I know these updates occurred a few days back as well:
Surface - Extension - 2.9.139.0
Intel Corporation - Extension - 27.20.100.8681
Will report back later today after doing the optional KB5001567 I mentioned above.
Edit: Problem still persists after the optional KB5001567 I mentioned.