Sluggish Magic Mouse 2 on 2018 Mac mini

Hi Community,

I have the strangest problem with my Mouse and I'm wondering if anyone can help. My Magic Mouse 2 works fine about 50% of the time. The rest of the time it is sluggish and laggy. Tracking is slow or even freezes and it's frustrating as heck.

Here is what I have learned about the issue so far:

• It's not dirty. The issue occurs when I move the mouse, or when I use my fingers on the top surface.
• It's not a low battery. It happens even when fully charged.
• It's not distance. The Mouse is only about 2ft away from the Mac mini.
• It's not the OS. I'm running up to date Catelina.
• It's not signal strength. According to the bluetooth signal strength, its strong.

I thought it might be RF noise from other devices. I turned off my iPhone, unplugged my bluetooth headset. Moved anything that could generate RF noise far away. I even wrapped my external SSD drive in tin foil because I read online somewhere that they emit lots of RF noise. Same thing.

Here's a couple of other things I have learned:

• Using a wired mouse works perfectly. Very fast, zero lag.
• Using a Bluetooth Keyboard (Matias) DOES LAG SOMETIMES, but a wired one does not.

This to me suggest that the bluetooth in the Mac mini itself is sucky. But is it? If I power-off the mouse and turn it back on again, the problem goes away for a while, but always returns. Same thing happens if I reboot the Mac.

There is one other thing strange that I noticed. If I unplug a USB device and plug it back in, the bluetooth Magic Mouse II seems to work properly again for a while. I have not really repeated this test too many times yet to be sure, but...

I've had the mouse too long to return it, and I don't really want to buy another Apple Mouse if I don't have to.

Any help is appreciated. Thanks!