Short answer: it's not really "within spec" like a Tesla — it's a real, documented gap in Teams' standard noise suppression, and the actual fix is exactly the feature your company has turned off.
Here's what's going on. Teams has two different things people mix up under "noise suppression":
The regular one (Auto/High/Low/Off) is only trained to strip out non-human noise — typing, fan hum, that kind of thing. It's deliberately cautious about anything voice-shaped, because early versions got dinged for clipping people's actual speech. So, your coworkers' voices in the background get treated as "might be someone talking, leave it alone" instead of getting cut.
Voice Isolation is the one that would actually fix this. It builds a personal voice profile from your voice and uses that to strip out everything that doesn't match — including other people's voices. That's almost certainly the "voice recognition" thing your IT has locked down, since turning it on means Microsoft is processing your pitch, inflection, and speech patterns to build that profile. A lot of companies block it for exactly that biometric-data reason, not to make your life harder specifically.
So, without that profile, Teams literally can't tell your voice apart from a coworker's three desks away — it's just guessing off generic acoustic cleanup. No setting you toggle is going to get past that.
The mic situation isn't helping either. You're stuck on the laptop's built-in array mic instead of the one on your Surface Headphones, and that matters a lot — an array mic picks up the whole room, while a mic sitting near your mouth has a way better signal-to-noise ratio. Even bad noise suppression works decently with a headset mic; it just can't with a room mic.
If it turns out the headphone mic isn't available for a real reason (not a policy block, just not showing up), a cheap wired USB headset is worth trying — it skips the Bluetooth profile mess entirely and Windows almost always picks it up cleanly.