usb – Most keystrokes on my Microsoft Sculpt Ergonomic Keyboard are ignored

I am trying to get a Microsoft Sculpt Ergonomic keyboard to work with my MacBook Pro and while I found a couple of posts on similar issues, none of the suggested solutions worked for me, so I am posting this, hoping someone has a fresh suggestion:

Problem

My keyboard is skipping a lot of keys. I.e. some of the keystrokes do not appear in my editor/browser. Also moving the complementary mouse (connected to the same dongle) makes very sluggish moves on screen. Occasionally, it starts working well for a couple of minutes and lagging usually starts when switching apps e.g. if I switch from OneNote to Firefox.

Setup

  • MacBook Pro (13-inch, 2020, Four Thunderbolt 3 ports) macOS 10.15.7
  • Microsoft Sculpt Ergonomic Mouse & Keyboard. They are wireless and connect to a Microsoft® 2.4GHz Transceiver v9.0
  • To connect the transceiver I use a 4x USB 2.0 to USB-C hub.
  • An additional wired mouse plugged into the hub

Troubleshooting so far

Following other posts, I tried the following on my mac:

  • turning it off and on again
  • turning bluetooth off on the macbook
  • disable handoff for icloud devices
  • disable slow keys and sticky keys.
  • use different usb ports (both usb c ports on the mac and usb ports on the hub
  • run sudo fs_usage | grep -v 0.00 to see if there is any kernel throttling happening.

To rule out any issues with the usb dongle/hub or wireless signal jamming, I plugged the usb dongle into my Huwai MateBook (running Ubuntu), while I kept the MacBook running next to it. The keyboard works perfectly well on the other laptop.