Hello, Jay.
Welcome to Microsoft Community!
I have noticed that your Surface Laptop 7 is experiencing some unusual behavior when connected to your Microsoft Sculpt suite. The phenomenon may be related to compatibility between USB ports.
I believe there is no hardware issue with your devices as you have been using them. Also you have installed the correct drivers:
Download Surface Laptop 7th Edition from Official Microsoft Download Center
Therefore, the driver will not be the cause of the problem.
It's worth noting that the Surface Laptop 7 comes with a USB-A 3.1 port, while the receiver of the Microsoft Sculpt set is the USB 2.0 version. While they still work fine for the most part, we can't rule out some compatibility issues.
You can try other connections, such as improving the connection with the help of the Surface Dock 2 or the Surface Thunderbolt 4's expansion port. And make sure there are no physical obstacles or other wireless devices interfering with the signal between the receiver and the device.
If you wish to get further advice on this, I recommend that you try to get in touch with the Surface Technical Support team and learn more details about using the Microsoft Sculpt suite with the Surface Laptop 7.
I am sharing with you a step-by-step procedure for creating a service order here:
Open the Surface App (usually built into your Surface device, or you can download it from the Microsoft Store if you don't have one) and follow the procedure below:
- Click "Help and Support" and then click "Get Help".
- Briefly describe your problem in the text box, such as "Microsoft Scuplt Kit won't connect properly with Surface Laptop 7", and then press Enter.
- Click "Contact Support" at the bottom.
- Select "Technical Support" and click "Confirm".
- You will see "Chat support" and "phone support" options, please contact them during working hours, you will get one-to-one support services.
I wish you all the best.
Best Regards.
Leo.L - Microsoft Community Support Specialist