Xbox controller & bluetooth

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So, figured I'd try out one of the new Xbox Series X/S controllers with PC as they feel good quality etc, replace my aging third party wired controller with a wireless one for less clutter.

So, it connects fine (after plugging in and updating the firmeware), pc is fully up to date etc. The xbox companion app knows it's connected when it's on bluetooth and shows all button presses etc in test mode. On the desktop or in anything non-fullscreen it works continuously and flawlessly. However, start a fullscreen app (so, any game basically) and you get constant dropouts on the connection. Sometimes it'll go 5-10 minutes fine, others it drops out 3 times in a minute.

Anyone else having issues with this? Can find people having problems with older models but surely you'd think something like this should be sorted on the new hardware/firmware.
 
No other bluetooth devices, my keyboard and mouse are connected to their own dedicated wireless dongles (Logitech G items). However if I connect my keyboard via bluetooth and game, it works without any dropouts. So seems to be specific to the controller.

Also not using wifi as the PC is connected via ethernet. Using the built in bluetooth on my MSI B550 Gaming Edge WiFi board. Distance from the motherboard to the controller is max 1m, generally less.

I should add, I actually bought a controller specifically for the PC. We also have a new console so I tried that controller too. Same issue.

Windows was reinstalled less than 2 weeks ago, so I can't see it being a driver conflict issue.
 
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