Hi Jimmy!
Just saw your post - maybe the issue has been resolved in the meantime?
I just wanted to share my experience since I had exactly the same problem: I was quite frustrated because when and wherever you post this problem of poor MSW performance in large "track changes" documents all you get is the advice to update your MacOS and your Office suite, which is no help at all!
Here is what worked for me:
When using MS Word track changes there are different options/modes of how to be tracking and annotating changes:
Next to the "track changes" icon you have
- Simple markup
- All markup
- No markup
- Original
When using the default "All markup", MSW tries to adjust the layout, page allocation, and page breaks of every page below depending on EVERY single letter or space you type, WHILE you type it, which can get extremely tedious in large documents.
I solved the problem by selecting "Simple markup", where MSW does not create an annotation of what has been deleted, inserted etc, but just shows a red correction indicator next to the paragraph but maintains the final layout in the text. In this case, the unnerving real-time layout adjustments are not happening because you only have the regular line-by-line additions of the text you type.

If you need to see the extended version of your corrections containing every deleted segment etc simply change back to "All markup" after you have finished the page or the paragraph etc.
This has significantly increased the performance in MSW track changes on my MacBook Pro with Ventura 13.5.2.
Hope this helps!
Best wishes!
Mat