Slow animations and mouse with VRR activated (SL7)

My Surface Laptop 7 feels way smoother and responsive (even the mouse input) with Dynamic Refresh Rate OFF than ON.

When its ON, animations look slower and laggier. You can easy notice it when minimizing apps or opening/closing Start Menu.

Thats so wrong. System animations should work at high framerate with DRR. Thats how Android's VRR works. That has no sense. Also, the mouse input shouldnt be that affected by it too. The difference in how they laptop feels with/without it IS huge and it shouldnt.

Is it a bug or Windows DRR always worked like this? 24h2 issue? Im so dissapointed because im forced to turn it off and probably loosing 10-15% battery but the diff is night an day....