Hi Michael,
Thank you for posting us here in Microsoft community!
Surface Dock supplies 90 watts of power. Surface Book 2’s inbox charger supplies 102 watts. If the device is under heavy use, and using more than 90 watts of power, the Surface may be running off of battery power. As such, the power setting is not recognizing the dock’s power connection.
In this case, we suggest that you may use the inbox PSU and use USB-C for external devices to work around with this concern.
Keep us posted for further assistance.
Loyd G.