Hello Mian Mudasir Bari,
Based on the logs you shared, the core issue is not the Cloud PC itself but network latency.
From your screenshot, the round-trip time is around 220 ms. This is considered very high for a Windows 365 / Remote Desktop session, and it commonly causes freezing, disconnections, and severe lag. The fact that FPS drops to 0 and you see "Connection paused" strongly indicates a network path issue.
Since you have already tried restarting the Cloud PC, reinstalling the app, and reassigning the license, this is very unlikely to be a client-side problem. The focus should now be on the network connection.
The first thing to check is the Azure region of the Cloud PC. If the Cloud PC is hosted in a region far from the user’s location, latency can easily exceed 200 ms. In that case, reprovisioning the Cloud PC in a closer region is recommended.
Second, if you are using a VPN or any security appliance, you should disable it and test again. The log shows UDP relay, which suggests the connection is not direct but going through a relay path, significantly increasing latency.
Third, try connecting from a different network (for example, a mobile hotspot). If performance improves, then the issue is likely related to your current ISP or corporate network routing.
In conclusion, this is most likely a network latency issue (220 ms) rather than a Cloud PC fault. You should prioritize checking the region, VPN usage, and network routing to resolve the problem.
I hope this helps and wish you success in resolving your issue.
TV