Kernel Panics while using FCPX after Sonoma Upgrade

After Sonoma upgrade while using FCPX for an hour or three system crashes (beach ball, system freezes, mouse pointer disappears, computer restarts).

ChatGPT breaks down the crash report as a Kernel Panic "The panic occurred due to a "userspace watchdog timeout," specifically from the process responsible for monitoring the WindowServer. There were

two induced crashes within 120 seconds, indicating a serious issue with the WindowServer process."

It doesn't seem to be a single action that leads to the crash, but I've only experienced it while using FCPX. It's crashed during background rendering and general editing in the timeline. Experienced crash about 7 times.

Things I've tried:

• Make Sure OS and FCPX are up to date.
• Reset FCPX preferences
• Reset SMC and NVRAM
• Disconnect Thunderbay Flex Raid and work off different external ssd drive

I do have a secondary monitor. I upgraded to Sonoma from Monterey. Did not have any similar issues with Monterey.

Thinking I need to do a full wipe and downgrade of OS, but thought I'd check here first.

Thank you for your time.

System Information:

iMac 2020 (intel)

OS: Sonoma 14.3.1

FCPX: 10.7.1

Processor: 3.6 GHz 10-Core Intel Core i9

Graphics: AMD Radeon Pro 5700 XT 16 GB

Memory: 64 GB 2667 MHz DDR4

Crash Report: