Bluetooth Logitech keyboard lag with MacBook Pro recently

lately I am experiencing terrible lag with my Logitech Bluetooth keyboard when I using with MacBook Pro. It intermittently stops typing for few seconds and suddenly starts. It started acting this way very recently. I can tell this is not an issue with my keyboard as it works fine when connected to iPad Pro. I tried all options resetting PRAM, resetting blue tooth module, disconnecting and reconnecting, but nothing seems to work. When I rest the PRAM it appeared to be working but within few hrs again the lag started. Any help with this issue is really appreciated. I also experienced the issue with bluetooth mouse as well.

For more info I am using Logitech keyboard k780 and Mac OS Catalina 10.15.5 on MacBook Pro.