Hi Franc,
Based on the many years that people have complained about this problem here and on the Microsoft Store reviews, and Microsoft's complete failure to acknowledge it in any way, I agree with you. This problem will never be fixed. This is a two-button mouse with a scroll strip that doesn't let you reliably scroll.
I recommend Logitech, which always works. Always. Like you, I also need a small mouse that can be put in a tight space, so I use the Logitech T630.
Steve