Believe it or not, it's a known issue that USB-3/USB-C devices can interfere with the 2.4ghz frequency, which is what the Microsoft dongle uses: https://www.usb

Believe it or not, it's a known issue that USB-3/USB-C devices can interfere with the 2.4ghz frequency, which is what the Microsoft dongle uses: https://www.usb.org/sites/default/files/327216.pdf https://www.usb.org/sites/default/files/327216.pdf. As another answer stated, plugging the dongle into a hub positioned away from the USB-3/USB-C connection usually sorts the problem. Another thing you might want to check is that your mobile phone is not near the keyboard or dongle, I find this can also cause key dropping/sluggishness. It's a shame they insist on using this proprietary dongle, as like you say, it's a great keyboard otherwise – another bad thing about it is that if you lose the dongle, you have to replace the entire set as they are paired in the factory. I'm on my third Sculpt because keys eventually fall off, but it gets pretty heavy usage so I don't feel too hard done to and the last one was replaced under the 3 year warranty.