Magic Trackpad 2 Constant Lag

Hi,

I've just got a new Magic Trackpad 2 for my M1 Max 14' MacBook. I've noticed that when I used the Magic Trackpad 2, there's a bit of a lag while scrolling and simply while moving the cursor. This isn't present with the trackpad that's on the MacBook's body itself - that one looks incredibly smooth even on my 60hz external monitor, while the Magic Trackpad 2 has noticeable lag even on the 120Hz MacBook display. It's almost like the refresh rate drops significantly.

It is constant even when I wire the trackpad using the lightning to USB-C cable. I've tried all the basic steps - turning the trackpad on and off, the MacBook, turning off other bluetooth devices. If bluetooth interference was the reason, it would be fine when wired, but that's not the case - the lag is present regardless. Any clues?

Many thanks.