Hey, ugh... looks like there's no proper response yet, so I'll just leave this one here..
I'm running on Windows 11 24H2; OS Build: 26100.2894
Settings > Bluetooth & devices > Touchpad > Taps > Touchpad sensitivity --> Set this to **Most Sensitive.**This one supposedly turns off Palm Rejection and enables the touchpad while keystrokes are also being made. I haven't tested the High Sensitivity mode yet but I'll leave that to you guys. I'm fine with Most Sensitive. ;)
Thanks to @PartlyDifferentiated on Reddit for the answer (I just came across it).